ExxonMobil Gets Nod
The dust has finally settled on a successor to Kosmos Energy after a protracted impasse between Government and the company over what can be described as ‘trivially-unfounded’ legal claims.
Government requested the American oil giant, ExxonMobil to tender its business proposal after Kosmos Energy’s Chief Operating Officer, Brian Maxtead recently wrote a letter to officially inform the presidency of the sale of its shares to ExxonMobil. The oil giant has already started advertising its competence, expertise and social contributions to Ghanaians in some sections of the media.
Meanwhile, this paper has gathered that claims made by the Ghana National Petroleum Corporation (GNPC), particularly on a legal clause in the contract agreement between Government and Kosmos which mandated Kosmos Energy to give Government the first option to acquire its stake, are non-existent.
Government has taken exception to the deal, insisting that it would not endorse the deal since the law required it to be privy to whoever the shares were expected to be offloaded to, before it finally gave its blessing to the deal.
Brian F. Maxtead, President and Chief Operating Officer of Kosmos Energy, by a letter dated June 29, 2010, formally informed President Mills of the Kosmos-ExxonMobil deal.
He stated inter alia: “We sought the most capable company we could find as the purchaser. We believe ExxonMobil fully meets the technical and financial requirements to succeed Kosmos and would bring to Ghana advantages that no other company can match. “Indeed, we think ExxonMobil sets the industry standard in many aspects of the petroleum business, including its environmental and safety performance.
Moreover, we are sure that ExxonMobil shares the long term vision, goals and objectives of the Government to develop the country’s energy sector for the benefit of the entire nation and we expect them to partner with GNPC in the process.”
According to him, “The project and the country deserve the best possible industry partner, and we fully appreciate the importance of the decision before you.
We understand your Government has considered a number of alternatives and hope you believe, as we do, that ExxonMobil is the right choice for the Government and the people of Ghana.”
The COO therefore emphasized that Kosmos had reached an agreement with ExxonMobil which would enable his outfit to acquire Kosmos’ assets in Ghana.“We now formally request the consent of the Government of Ghana to this transaction.”
Last year, Kosmos Energy opened a bid to sell off its stake in the Jubilee Oilfield to interested investors. After the offer expired, ExxonMobil’s name popped up as the successor to Kosmos’ stakes but GNPC has been dilly-dallying with the endorsement of the deal under the pretext of not being pleased with the buyer.
GNPC had wanted the stakes to go to the China National Offshore Oil Company (CNOOC) but Kosmos has maintained its position. ExxonMobil thus agreed to offer $4 billion for the stake but Government intervened with objections, describing the development as illegal.
Source: peacfmonline.com
Government requested the American oil giant, ExxonMobil to tender its business proposal after Kosmos Energy’s Chief Operating Officer, Brian Maxtead recently wrote a letter to officially inform the presidency of the sale of its shares to ExxonMobil. The oil giant has already started advertising its competence, expertise and social contributions to Ghanaians in some sections of the media.
Meanwhile, this paper has gathered that claims made by the Ghana National Petroleum Corporation (GNPC), particularly on a legal clause in the contract agreement between Government and Kosmos which mandated Kosmos Energy to give Government the first option to acquire its stake, are non-existent.
Government has taken exception to the deal, insisting that it would not endorse the deal since the law required it to be privy to whoever the shares were expected to be offloaded to, before it finally gave its blessing to the deal.
Brian F. Maxtead, President and Chief Operating Officer of Kosmos Energy, by a letter dated June 29, 2010, formally informed President Mills of the Kosmos-ExxonMobil deal.
He stated inter alia: “We sought the most capable company we could find as the purchaser. We believe ExxonMobil fully meets the technical and financial requirements to succeed Kosmos and would bring to Ghana advantages that no other company can match. “Indeed, we think ExxonMobil sets the industry standard in many aspects of the petroleum business, including its environmental and safety performance.
Moreover, we are sure that ExxonMobil shares the long term vision, goals and objectives of the Government to develop the country’s energy sector for the benefit of the entire nation and we expect them to partner with GNPC in the process.”
According to him, “The project and the country deserve the best possible industry partner, and we fully appreciate the importance of the decision before you.
We understand your Government has considered a number of alternatives and hope you believe, as we do, that ExxonMobil is the right choice for the Government and the people of Ghana.”
The COO therefore emphasized that Kosmos had reached an agreement with ExxonMobil which would enable his outfit to acquire Kosmos’ assets in Ghana.“We now formally request the consent of the Government of Ghana to this transaction.”
Last year, Kosmos Energy opened a bid to sell off its stake in the Jubilee Oilfield to interested investors. After the offer expired, ExxonMobil’s name popped up as the successor to Kosmos’ stakes but GNPC has been dilly-dallying with the endorsement of the deal under the pretext of not being pleased with the buyer.
GNPC had wanted the stakes to go to the China National Offshore Oil Company (CNOOC) but Kosmos has maintained its position. ExxonMobil thus agreed to offer $4 billion for the stake but Government intervened with objections, describing the development as illegal.
Source: peacfmonline.com
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