Business News of Friday, 13 July 2012

Source: citifmonline

Petro SA to acquire Sabre oil's stakes in Ghana

Citi Business News can confirm South Africa's national oil company PetroSA is likely to acquire Sabre Oil & Gas Holdings's stakes in Ghana. The acquisition includes Sabre’s stakes in the Jubilee oil field.

Citi Business News has learnt Sabre Oil and PetroSA are currently in talks over the move though it’s still unclear when the deal will be sealed. It still remains unclear the likely value of the stake.

Sabre owns 4.05 per cent of the deep water Tano Block as well as 1.7 per cent in the offshore Jubilee field which Tullow Oil operates.

If talks are successful the South African company will take over these stakes. PetroSA's interest in Sabre's assets comes after Kosmos Energy announced in early May, the termination of the acquisition of Sabre's assets in Ghana.

There were reports Tullow was likely to buy Sabre's interests in Ghana after Kosmos terminated the acquisition. Citi Business News sources however say the jubilee operator never showed any official interest in the stakes.

PetroSA becomes the second oil company to officially show interest in Sabre’s stake in Ghana. In May this year Kosmos said it terminated the acquisition agreement to buy Sabre Oil’s 4.05% interest in the deep water Tano Block offshore Ghana after a mutual agreement between the two to terminate the acquisition.

This came after Kosmos announced in February that it had exercised the right under the existing Joint Operating Agreement to acquire the participating interest of Sabre in the Tano basin for a purchase price estimated at approximately $365 million.

Kosmos had expected to seal the deal in the second quarter of this year subject to a definitive transaction agreement, customary closing conditions and necessary government approvals.

PetroSA’s latest move to acquire Sabre’s assets forms part of its strategy to acquire more assets in Africa in a bid to increase its revenue base outside South Africa.**