THE GHANAIAN GOVERNMENT has blocked the estimated US$4bn sale of a stake in a huge oil field, foiling months of talks between potential buyer Exxon Mobil Corp and the stakes owner, Kosmos Energy LLC.
p>THE GHANAIAN GOVERNMENT has blocked the estimated US$4bn sale of a stake in a huge oil field, foiling months of talks between potential buyer Exxon Mobil Corp and the stakes owner, Kosmos Energy LLC.
Ghanaian Energy Minister Joe Oteng-Adjei said state-run Ghana National Petroleum Corp. would be the only entity allowed to buy the Kosmos stake in the so-called Jubilee field.
Earlier, he sent a letter to Exxon informing the company that a deal with Kosmos wouldn't receive government approval.
The decision is the second recent setback for Exxon's expansion plans in Africa,after an attempt to buy a stake in Uganda fell through.
With huge reserves in nearby Nigeria and recent discoveries up the coast in Sierra Leone, the Gulf of Guinea has emerged as a major new oil region.
Kosmos, which is funded by private-equity firms Blackstone Group LP and Warburg Pincus LLC, agreed in October to sell its 23.5 per cent stake in Jubilee, which holds an estimated 1.8bn barrels of oil. The deal was valued at an estimated US$4bn.
Mr. Oteng-Adjei said Ghana has retained Morgan Stanley as its adviser and remains ready to negotiate with Kosmos. "If they change their minds and decide to stay and work with us, we will work with them like any other partners," Mr. Oteng-Adjei said.
"ExxonMobil routinely evaluates potential development opportunities around the world," an Exxon spokesman said.
