President disapproves of Kosmos’ sale

A source from the presidency has hinted of President Mills intention to disapprove Kosmos Energy's reported deal to sell its stake in the giant offshore Jubilee field to Exxon Mobil.oil11

As reported by the Ghanaian Journal.com early this week of State oil company Ghana National Petroleum Corp manipulation by the bid from ExxonMobil and the state interest in the sale to Chinese giant CNOOC.

Kosmos has a 30.875 percent stake in Jubilee's West Cape Three Points block and an 18 percent stake in the Deepwater Tano block

Contrary to these deals GNPC has expressed interest in acquiring the property itself, raising questions among analysts over whether really government has the financial muscle to support such a move.

According Reuters,a leading member of the ruling party, and also the Chairman of the GNPC board, Ato Ahwoi, a close ally of President John Atta Mills said “Whatever the GNPC management said is the true position of government.”

Government opposition puts the Kosmos-Exxon deal, which sources say could be worth $4 billion, at risk.

GNPC Director of Operations Thomas Manu said on Thursday that the state company remained interested in Kosmos' stake in the Jubilee field, among the largest oil finds in Africa, and had deep enough pockets to pay for it.

According to Energy Ministry spokesman Michael Sarpong said the ministry hasn't been notified about Exxon Mobil's agreed purchase of Kosmos's local assets. He however confirmed reports that the government has held talks with China National Offshore Oil Corp. to partner them to buy Kosmos stake.

Meanwhile, the Financial Times has reported that (GNPC) is seeking offers from foreign oil companies to partner with them to develop its Jubilee oilfield

The Financial Times cited Thomas Manu, director of operations at state-owned GNPC, as saying Kosmos acted incorrectly when it gave 26 interested buyers data about the Jubilee field, adding Ghana welcomed any company, including Exxon Mobil, that was willing to remedy “breaches” in the process.

The deal agreed between Kosmos and Exxon Mobil is estimated by a person familiar with the sale to be worth at least $4 billion and comes as explorers are putting more resources into exploration off the coast of Ghana. The FT cited unidentified people close to GNPC as saying the company has secured the financing to acquire Kosmos assets.