Business NEWS
ExxonMobil Corp to pay $4B for Ghana oil field from Kosmos Energy of Dallas
By Caroline Mittermair for CEOWORLD Magazine Updated:October 7, 2009
Get CEOWORLD Magazine digital monthly version. special- Top Capital Cities for a business Traveler, # Interview with Minister of Tourism of Greece. 1 Issues Subscription= $1 Only, 10 Issues Subscription= $5 Only. Grab your copy now!!!!
U.S. oil giant ExxonMobil Corp (XOM) has bought Dallas’ Kosmos Energy LLC’s stake in oil blocks offshore the West African country of Ghana.
The deal marks the first entry by one of the world’s major oil companies into what is proving to be a significant new oil province and may pave the way for further acquisitions. Shares in Kosmos’ partners in the blocks – Tullow Oil PLC (TLW.LN) and Anadarko Petroleum Corp. (APC) – both saw significant gains as the market priced in possible takeovers, analysts said.
At 1428 GMT Tullow was up 7.6%, or 85 pence, at 1200 pence and Anadarko was up 4.8%, or $2.97 at $64.62.
The person did not give the value of the deal. Analysts at Morgan Stanley put a value of $3.3 billion to $5 billion on Kosmos’ stake in the blocks.
ExxonMobil declined to comment. Kosmos was not immediately available to comment.
The Kosmos blocks contain the Jubilee field, which is operated by Tullow and is estimated to hold between 1.2 billion and 1.8 billion barrels of oil equivalent. A separate discovery offshore Sierra Leone last month by Anadarko, at the western extreme of the same geological formation that contains Jubilee, signaled the potential for further multi-billion barrel discoveries stretching eastward for 1,100 kilometers through the waters of the Ivory Coast and Liberia, wsj reported.
osmos owns less than 25 percent of the Jubilee field. Other owners include: Anadarko Petroleum Corp., Sabre Oil & Gas, EO Group and Ghana National Petroleum Corp.
The partners, together, have spent $3.2 billion to develop the field, with Kosmos contributing about a quarter of that amount.
Jubilee, which was discovered in June 2007, may hold 1.8 billion barrels of oil and will produce 120,000 barrels of crude a day, according to London-based Tullow Oil PLC, project operator and another owner of Jubilee.
Related Reading:
Small Business For DummiesWant to start the small business of your dreams? Want to breathe new life into the one you already have? Small Business For Dummies, 3rd Edition provi... Read More >
Start Your Own BusinessYOUR ROAD MAP to BUSINESS SUCCESS
From the editors of Entrepreneur magazine, this bestselling business startup book has helped hundre... Read More >
Good to Great: Why Some Companies Make the Leap... and Others Don'tThe Challenge
Built to Last, the defining management study of the nineties, showed how great companies triumph over time and how long-term sust... Read More >
Business, Second Edition: The Ultimate Resource (Business : the Ultimate Resource)The "Business Bible" that captured the imaginations and fueled the ambitions of readers from the boardroom to the mailroom has now been completely rev... Read More >
BusinessThe tenth edition of this best-selling introductory text features an up-to-date, comprehensive survey of the functional areas of business: management,... Read More >
Like this article!
(No Ratings Yet)
Loading ...17207 views
Comments
Grab a copy of CEOWORLD Magazine for $1 only!!!
