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Exxon buys Kosmos’ Ghana Oil Field stakes
By Masahudu Ankiilu Kunateh, Ghanadot
Unconfirmed reports say U.S. oil giant ExxonMobil has bought
Kosmos Energy's stake in oil blocks offshore Ghana that contain
large oil discoveries, an insider has disclosed.
The deal marks the first entry by one of the world's major oil
companies into what is proving to be a significant new oil
province and may pave the way for further acquisitions.
According to Down Jones Index, Shares in Kosmos' partners in the
blocks - Tullow Oil PLC (TLW.LN) and Anadarko Petroleum Corp. (APC)
- both saw significant gains as the market priced in possible
takeovers, analysts said.
At 1428 GMT Tullow was up 7.6%, or 85 pence, at 1200
Anadarko was up 4.8%, or $2.97 at $64.62.
The person did not give the value of the deal. Analysts at
Morgan Stanley put a value of $3.3 billion to $5 billion on
Kosmos' stake in the blocks.
ExxonMobil declined to comment. Kosmos was not immediately
available to comment.
The Kosmos blocks contain the Jubilee field, which is operated
by Tullow and is estimated to hold between 1.2 billion and 1.8
billion barrels of oil equivalent. A separate discovery
offshore Sierra Leone last month by Anadarko, at the western
extreme of the same geological formation that contains Jubilee,
signaled the potential for further multi-billion barrel
discoveries stretching eastward for 1,100 kilometers through the
waters of the Ivory Coast and Liberia.
For this reason, ExxonMobil's (XOM) acquisitive interest in this
area is unlikely to stop at Kosmos Energy, said NCB Stockbrokers
analyst Peter Hutton. "Kosmos is too small for them. The move
should be seen as a precursor of wider interest," possibly a
takeover of Anadarko or Tullow Oil, both of which hold
significant exploration acreage in the region, he said.
"Given the level of interest out there and the number of
vultures circling," ExxonMobil may need to act with a little
more haste than normal if it wants to take a dominant position
in the region, Hutton added.
The entry of a blue-chip name like ExxonMobil is a major
positive for Ghana too, said Hutton.
"The Ghanaians should be very pleased. They've got an embryonic
oil industry," and now they have the involvement of one of the
largest, most experienced and technically qualified oil
companies, said the person.
A large number of major international and state-owned oil and
gas companies were among potential buyers of this strategic
asset. These companies have been informed by letter that Kosmos
has entered into an exclusive arrangement with ExxonMobil, the
person said.
Kosmos holds 30.875% of the West Cape Three Points Block and 18%
of the Deepwater Tano block. Its partners are Tullow Oil PLC (TLW.LN)
and Anadarko Petroleum Corp. (APC).
Jubilee field straddles both blocks and Tweneboa discovery in
Deepwater Tano is thought to be another large oil reservoir.
Ghanadot
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