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Govt studying Exxon-Kosmos deal

Comment: Akosua..Yes!!!

I know
2009-10-08 12:04:15
Comment to:
Agreement already?

We in Ghana, and Africa in general, are so ignorant about international business that we become a laughing stock of the developed world.

Kosmos is a private company which has been offered a Licence to explore for Oil and Gas in Ghanaian territorial waters offshore. For goodness sake, Kosmos is not even a private Ghanaian company let alone state-owned. So, if Kosmos goes out there and contracts loans to do its business in its own right and it has reached a point where its limited technical and finacial capacity does not allow it to continue exploration and decides to sell its investment portfolio in Ghana, what has GNPC got to do with that?

I once posted on this net that NDC people are only dreaming about oil production in 2010.

They are suppposed now to be studying the sale agreement between Kosmos and Exxon Mobil to see whether their 2010 agenda is captured in the agreement. Sorry, but there may not even be a hint of that in the agreement. It may only be mentioned in passing just to please the Government.

The fact of the matter is that, if indeed Exxon Mobil takes over the Kosmos share, there are two scenarios. They may quickly negotiate the taking over of Anardarko, another US E & P to increase their stake, or, they may apply for an extended license, which would not be denied anyway.

Exxon Mobil is a very big player in the global oil and gas industry, remember, and they dont go for peanuts. For now, ours is peanuts.

Whatever the decision will be, Exxon Mobil will do due dilligence on the Exploration figures submitted by Kosmos. That will take not less than 12 months. It is after that that production and development plans would be submitted for GNPC advise.

To say the very obvious. There is nothing the Government can do about the pace of oil and gas exploration and production, nor can they influence when production should start.

Extractive industries, whether be they gold mining or oil and gas, have the same modus operandi.

This article is closed for comments.

10-08 04:51
I know
10-08 12:04
JAH-jerry >>>>>>>>>>>>>>>>>>>>
10-08 09:05