BP Said to Nix Bid for Stake in Jubilee - Bloomberg

(Dow Jones), Jan. 7, 2010

BP has abandoned plans to bid for Dallas-based Kosmos Energy LLC's stake in the Jubilee oil field in Ghana, Bloomberg News reported Wednesday, citing two people familiar with the matter. Talks between BP and Ghana National Petroleum Corp. over a joint offer for Kosmos's Ghanaian assets broke down in recent weeks, the sources said. The withdrawal may pave the way for Exxon Mobil Corp.'s planned purchase of Kosmos's Jubilee stake for at least $4 billion. Jubilee is estimated to have potential resources of 1.8 billion barrels.

A spokesman for U.K.-based BP declined to comment. An ExxonMobil spokesman also wouldn't comment, except to say that the U.S. major "routinely evaluates potential development opportunities around the world."

Kosmos, which is backed by private-equity firms Blackstone Group LP and Warburg Pincus LLC, said Oct. 12 that it had agreed to sell its Ghana assets, including a 23.49% stake in Jubilee, to ExxonMobil.

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