09.02.10 Menas Associates
Ghanaian government threaten to block $4 billion ExxonMobil deal
ExxonMobil Refinery, Ghana
According to 9th February press reports, the government has blocked Kosmos'
proposed US$4 billion sale of its Ghana stakes to ExxonMobil. It accuses Kosmos
of
cutting GNPC out of discussions about the Jubilee field's development and then
sharing information about the field with potential buyers without first
receiving
government permission.
Energy Minister Joe Oteng-Adjei said that GNPC would be the only entity allowed
to buy the Kosmos stake. Last week, he apparently sent a letter to ExxonMobil
informing the company that its deal with Kosmos would not receive government
approval.
The letter, reviewed by The Wall Street Journal, said that the government is,
"unable to support an ExxonMobil acquisition of Kosmos' Ghana
assets."
Instead, it "supports the strategic intent and efforts of [GNPC] to
acquire
Kosmos' Ghana assets at a fair market value."
"We felt that it had gone far enough that we needed to make a clear-cut
policy statement to [ExxonMobil's] that if they want to come into the country,
let
them come in through another avenue and respect our laws," Mr Oteng-Adjei
said on Monday 8th February in an interview. "We want to do things right
from the beginning."
For more news and expert analysis about Ghana, please see Ghana Politics & Security.
© 2010 Menas Associates