Big Fight Over Ghana’s Oil In US

There is a huge fight brewing over the Kosmos/EO group matter in the United States of America (USA). In focus now is Ghana government’s persistent determination not to allow Kosmos to sell to Exxon-Mobil.

In a write-up filed on the matter by Chuck Neubaur of the Washington Post said Ghana and Kosmos are fighting bitterly over who ultimately will control the field where up to 1.8 billion barrels worth of oil is said to be contained and worth the possibility of more discoveries. Ghana, according to the Washington Post, wants to block the estimated $4Billion purchase by Exxon Mobil, the world’s largest private oil company of Kosmos Energy’s stake in Jubilee Field.

Ghana government officials, the report said, are demanding it (the oil) to be sold to Ghana’s state-run oil company, the Ghana National Petroleum Company (GNPC). It is believed Ghana is trying to stop the Exxon Mobil deal so that GNPC can buy the Kosmos stake at a reduced price and sell it to another company for profit.

It is speculated that Ghana’s Attorney-General will go to Washington, DC soon to follow up with government contacts and US government officials still on the search for something to hit Kosmos in a way that will enable the Mills Administration to do what it wants with the Jubilee Field.

But Today’s reliable sources from the US indicate that Kosmos is not about to roll over dead. They are believed to be behind the Editorial that appeared in the Wall Street Journal recently about the Jubilee Field. The editorial titled “Why Africa is so poor,” suggested that Ghana was beating up foreign investors, an apparent reaction to the Ghana-Kosmos impasse.

Ghana Information Minister, John Akologu Tia on April 13th 2010 sent a rejoinder to the celebrated finance and economic newspaper stating Ghana’s position on the issue. (The rejoinder is published elsewhere on this page). Agents related to Kosmos are similarly believed to be behind the article in the Washington Times which is a conservative newspaper widely patronized by business people in Washington, DC.

“It is felt that the Ghana government must do its homework well to understand that playing with someone’s $4 billion is not a kindergarten matter. Playing with a well-connected American business group’s investment made within the laws of the foreign country (Ghana) and approved by the legislature is playing with fire,” an American business executive told Today Newspaper.

According to the business executive ‘when it is realised that Ghana only pulled through financial crisis with help from the IMF and the World Bank with support from the USA, it could end up that the pursuit of Kosmos becomes the thing that breaks the back of Ghana’s finance.”

The sources warned that “if the World Bank and the IMF with support from the Americans were to pull the plug on Ghana and freeze further disbursements, the Mills Administration and with it the country’s finances would collapse, no doubt about it.”

Today can state on authority that that is what Mills and his energy sector advisors are toying with. It is not known the advice coming from Dr Duffour’s Ministry of Finance on the matter.

And according to the source, Prof Mills and his finance advisors cannot be sitting on a safe fence with the boxing right that is being constructed in Washington DC. It is not an everyday matter to see articles about Ghana in the Wall Street Journal and the Washington Times.”

The last time something like this happened, was over the VALCO power price negotiations with Kaiser during the Kufuor era. At the time, EX-IM, OPIC deals were closed to Ghana and huge threats hung over the nation’s HIPC and other financial arrangements until a settlement was reached.

Maybe the Mills administration has advisors in Washington DC who know better than the business world does. But what is happening is a bad gamble for c country hinging on by a thin thread in the global economic jungle,” the business executive cautioned.