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Business News of Friday, 15 October 2021

Source: GNPC

GNPC acquires commercial interest in Jubilee, TEN blocks

The purchase came at the price of one hundred and ninety-nine million US Dollars (USD199m) The purchase came at the price of one hundred and ninety-nine million US Dollars (USD199m)

The Ghana National Petroleum Corporation (GNPC) has acquired seven percent (7%) Commercial Interest in both the Jubilee and TEN blocks, from Occidental Petroleum (“OXY”) for a purchase price of one hundred and ninety-nine million US Dollars (USD199m) effective 1st April 2021.

Consideration due to OXY at completion was approximately USD165m after, taking into account closing adjustments. Occidental had prior to this transaction acquired the Ghana assets of Anardarko.

This acquisition adds to GNPC’s existing Carried and Participating Interest (CAPI) of 13.64% in the Jubilee Field, and 15% in the TEN Field. The interests acquired will be transferred to GNPC’s subsidiary, the GNPC Exploration, and Production Company (GNPC Explorco).

With this acquisition of GNPC, Explorco will become part of the contractor group for the two blocks, together with Tullow, Petro SA, and Kosmos (who also bought an additional interest in the two blocks).

This is in line with GNPC and the Government’s strategy of increasing its participating stakes in viable oil blocks going forward. Commenting on the acquisition, the Chief Executive of GNPC, Dr Kofi Koduah Sarpong said “this acquisition is of immense benefit to GNPC as it allows GNPC Explorco to start generating cash flow for its activities.

There is also a debt write-off in excess of USD30 million from KOSMOS Energy. Kosmos Energy has also agreed to train GNPC technical staff in support of GNPC’s quest to build operator capacity.”

Issued By:
The Corporate Affairs Department,
Ghana National Petroleum Corporation,
Petroleum House, Harbour Road, PMB, Tema.
Email:info@gnpcghana.com Website: www.gnpcghana.com

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