Kosmos Energy said on Wednesday that it has acquired the participating interest of Sabre Oil & Gas Holdings Limited in the Deepwater Tano Block, in Ghana’s Jubilee field offshore the Western Region.
A statement from the company received in Accra said the purchase price was estimated to be approximately US$365 million, with up to an additional US$45 million contingent upon achieving certain performance milestones.
It said following closing of the acquisition, Kosmos’ interest in the Deepwater Tano Block would increase from 18 per cent to 22.05 per cent. Kosmos’ interest in the Jubilee field would increase from 24.1 per cent to 25.8 per cent.
Brian F. Maxted, President and Chief Executive Officer of Kosmos, said, “We feel very fortunate to have an opportunity to grow our interest in what we believe are some of the most valuable assets in West Africa at a compelling price.
“This transaction adds to existing production at Jubilee, enhances our stake in the next oil development offshore Ghana, and increases our exposure to the significant Deepwater Tano exploration programme in 2012.
“We have great belief and confidence in the quality, value, and upside of our discoveries and the further potential of the Tano basin petroleum system.”
The statement said the company anticipated funding the purchase price through a combination of cash on hand and borrowings. The effective date of the acquisition is 1 January, 2012.