Ghana National Petroleum Corporation (GNPC) and Kosmos Energy have reached an agreement with Occidental Petroleum Corporation, a U.S. company engaged in hydrocarbon exploration, to acquire stakes in two of its Ghanaian oil fields.
According to BloombergQuint, Ghana-based GNPC will pay US$200 million, while Kosmos Energy will pay US$550 million to the Houston-based company to acquire stakes in its Ghana assets, which it inherited from Anadarko following a strategic acquisition in 2019.
The US$750-million deal will set the companies on course to control a beneficial stake in the Jubilee and TEN fields in Ghana, as Occidental Petroleum ends a two-year divestment effort aimed at cutting debt, which surged to US$48 billion after the 2019 acquisition.
The conclusion of the deal means Occidental has now sold just over US$2 billion in assets in the past year, meeting a self-imposed disposal target that is key to the company’s debt repayment goals.
Meanwhile, Kosmos, which already owns a 24-percent stake in the Jubilee Field and a 17-percent stake in the TEN Field, will see its stake increase to 42 and 28 percent, respectively, following the completion of the deal.
Under the acquisition terms, the entities involved expect the cash flow generated from the assets to cover its acquisition costs in under three years if the crude oil price continues to trade above the $65-per-barrel mark.
Brent crude is currently trading above US$84 a barrel.
Kosmos is a U.S. upstream oil company founded and based in Dallas, Texas.
While GNPC operates as a state-owned entity and agency responsible for the exploration, licensing, and distribution of petroleum-related activities in Ghana.
Sarpong has been the CEO of GNPC since 2017 following his appointment by Ghanaian President Nana Akufo-Addo as its acting CEO. He replaced Alex Mould, who had served as CEO since 2013.