Ghana: GNPC Acquires Commercial Interest in Jubilee & TEN Blocks

Ghana’s national oil company, GNPC, has acquired seven per cent Commercial Interest in both the Jubilee and TEN blocks from American oil and gas company Occidental Petroleum for a purchase price of USD199 million effective 1st April 2021.

Consideration due to OXY at completion was approximately USD165 million after taking into account closing adjustments.

Occidental had, before this transaction, acquired the Ghana assets of Anadarko.

This acquisition adds to GNPC’s existing Carried and Participating Interest (CAPI) of 13.64 per cent in the Jubilee Field, and 15 per cent in the TEN Field.

The interests acquired will be transferred to GNPC’s subsidiary, the GNPC Exploration and Production Company (GNPC Explore).

With this acquisition, GNPC Explorco will become part of the contractor group for the two blocks, together with Tullow, Petro SA and Kosmos, which also bought an additional interest in the two blocks.

This is in line with GNPC and the government’s strategy of increasing its participating stakes in viable oil blocks going forward.

Commenting on the acquisition, the Chief Executive of GNPC, Dr Kofi Koduah Sarpong said, “This acquisition is of immense benefit to GNPC as it allows GNPC Explorco to start generating cash flow for its activities. There is also a debt write-off of over USD30 million from KOSMOS Energy.

Kosmos Energy has also agreed to train GNPC technical staff in support of GNPC’s quest to build operator capacity.”

Source: https://energynewsafrica.com