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 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 the 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 GNPC Explorco will become part of the contractor group for the two blocks, together with Tullow, Petro SA and Kosmos (who also bought additional interest in the two blocks).
This is in line with GNPC and 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 cashflow 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”.