Kosmos makes Oxy move in Ghana

Kosmos makes Oxy move in Ghana

Kosmos Energy and Ghana National Petroleum Corp. (GNPC) have bought out Occidental Petroleum’s stake in the Jubilee and TEN fields.

Kosmos will pay $550 million for an 18% stake in Jubilee and 11% in TEN. It reported that payment on completion was around $460mn, after taking into account closing adjustments.

GNPC paid $200mn for 6.08% in Jubilee and 6% in TEN. The company’s plans to acquire assets has come under fire in the past.

Oxy had gained its stakes off Ghana as a result of its acquisition of Anadarko Petroleum in 2019, for $38 billion. The company had struck a deal to sell the African assets onto Total for $8.8bn, but the plan fell apart in 2020. Anadarko had held a 24.08% interest in Jubilee and 17% in TEN.

The sale to GNPC should close in the fourth quarter of this year, while the deal with Kosmos closes today. It has an effective date of April 1. Oxy’s share of production in the second quarter was 22,000 barrels of oil equivalent per day net.

Oxy also reported that it had reached an agreement on “certain tax claims” on the assets.

Kosmos said it expected to recover the cost of the acquisition within three years, based on