BP Said to Be on the Prowl for Kosmos' Stake in Jubilee

Jubilee Field
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According to Bloomberg, UK oil major BP Plc may make a bid for Kosmos Energy LLC's stake in the Jubilee offshore development and has already tapped Goldman Sachs Group Inc. as its advisor.

Citing people familiar with the matter, Bloomberg reported that the second-largest oil company in Europe has held talks with Ghana National Petroleum Corp. concerning a joint bid for Kosmos' interest in Jubilee, although plans have not been confirmed at this time.

On October 12, reports surfaced that Kosmos would sell its 23.49% stake in Jubilee to Exxon Mobil Corp. for an estimated $4 billion. Some industry sources say that BP's offer could potentially strike down the deal if it is even considered by Kosmos, Bloomberg said.

Neither officials from BP nor Goldman Sachs could verify whether a potential bid was at stake.

However, according to Kosmos CFO Greg Dunlevy, ExxonMobil and Kosmos already have a binding, exclusive agreement for Kosmos' Ghanaian assets, which include the company's participating interest in Jubilee.

The Jubilee field, discovered offshore Ghana in 2007, is one of West Africa's biggest oil finds in recent years. The oil and gas field is estimated to contain recoverable reserves in the amount of 1.2B boe. Once the Jubilee field comes on stream in late 2010, Ghana will be catapulted into Africa's network of oil exporters.

Located on two licenses, Deepwater Tano and West Cape Three Points, Jubilee is situated in a water depth of 3,609 feet (1,100 meters) and is operated by Tullow (49.5%). Other partners on the Deepwater Tano license and Jubilee field include Kosmos Energy (18%), Anadarko Petroleum (18%), Sabre Oil & Gas (4.05%), and the Ghana National Petroleum Corporation (10%).

The West Cape Three Points license is operated by Kosmos Energy (30.88%). Partners on the license include Tullow Oil (22.9%), Anadarko Petroleum (30.87%), the E.O. Group (3.5%), Sabre Oil & Gas (1.85%), and the Ghana National Petroleum Corporation (10%).

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