Home > Business News > Total joins in scramble for Ghana’s jubilee field

Total joins in scramble for Ghana’s jubilee field

Oil-RigFrench oil giant, Total has reportedly joined in the competition for the Jubilee oil field stake of Kosmos Energy.

The Financial Times has reported that Total is one of the companies that the Ghana National Petroleum Corporation (GNPC) is talking with on the sale of the stake.

The other companies are BP and ExxonMobil, which almost bought the field after making a bid of $4 billion to Kosmos Energy which agreed to sell to it. The sale agreement could only materialize after approval of the Ghana government.

The China National Offshore Oil Company (CNOOC) has also shown interest, and there are indications that the government of Ghana favours a China deal.

Meanwhile, the GNPC itself has expressed interest in buying the stake.

The Financial Times quoted an unidentified source close to the GNPC saying, “The issue is what is in it for Ghana. GNPC is now looking to see how to improve the terms for the company for the long-term.”

The Jubilee oil fields is said to be the largest to be discovered in West Africa in the last 10 to 15 years and commercial production of oil is expected to start in June 2010.

Acording to Tullow Oil, the major stakeholders in the field, it has 1.8 billion barrels and has 17 wells.

Dr Kwabena Donkor, Deputy Minister of Energy had said that under Phase One of the Jubilee Field project, 120,000 barrels of oil and 120,000 million standard cubic feet of dry gas per day would be produced in 2010.

Production would be increased to 240,000 barrels of oil and 240,000 million standard cubic feet of gas per day under the second phase of the Jubilee Field project which is expected to commence in 2013.

Credit: ghanabusinessnews.com

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