Kosmos Energy Operations in Ghana

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History

In early 2005 Kosmos Energy conducted a seismic survey to evaluate the West Cape Three Points (WCTP) Block in Ghana's Jubilee Field. In 2006 the company entered the Deepwater Tano (DT) Block, also part of the Jubilee Field in order to extend their position in the basin.[1]

Activities

Kosmos is technical operator of the Jubilee field with a 23.4913 percent share, in partnership with Tullow Oil (operator with 36.4547 percent share), Anadarko Petroleum (23.4913 percent), Ghana National Petroleum Corporation (GNPC) (13.75 percent) and Sabre Oil and Gas.[2]

At the WCPT block, Kosmos is the operator company and holds a 30.875% interest. The company operates the block in partnership with Anadarko, Tullow Oil and the GNPC.[1] The petroleum agreement covering WCTP Block, like other petroleum agreements in the country, stipulates a seven-year exploration phase, during which exploration requirements are to be met and plan of development for discovered fields agreed on. The exploration phase for this block ended in July 2011.[3]

At the DT block, Kosmos holds an 18% interest. This block is operated by Tullow, with the remaining interests held by Anadarko, Sabre Oil and Gas and the GNPC.[1]

An agreement for the sale of Kosmos' stake in the Jubilee field to ExxonMobil was halted by the Ghanaian government, which has since indicated its interest in buying the stake itself.[4]

Kosmos published all of its Jubilee field contracts and the field's unitization agreement when it made its Initial Public offering (IPO) at the US Securities and Exchange Commission (SEC) in May 2011.[5]

Environmental Record

Kosmos has experienced several mishaps during the development of the Jubilee field. The company acknowledged spilling toxic drilling mud on three occasions, including a spill of around 600 barrels of oil in December 2009. Press reports claim that the Ghanaian government fined Kosmos $35 million for negligence, a fine which the company ultimately did not pay after challenging its legal basis.[6]

References

  1. 1.0 1.1 1.2 Our Assets:Ghana”. Kosmos Energy, retrieved 14 February 2012.
  2. Kosmos finds new Ghana fairway”. Petroleum Economist, 11 July 2011.
  3. Kosmos’ licence expires next month”. Ghana Oil Online, 3 June 2011.
  4. Kosmos Energy under investigation for corruption in Ghana”. Ghana Business News, 8 January 2010.
  5. Ghana Jubilee Field contracts”. Revenue Watch Institute, 21 November 2011.
  6. West African Oil Boom Overlooks Tattered Environmental Safety Net”. Pullitzer Centre, 19 January 2012.