PetroSA Concludes Jubilee Field Acquisition

Nosizwe Nokwe-Macamo 

Posted on: www.dailyguideghana.com

By William Yaw Owusu

Accra, Friday October 19, 2012.

PetroSA, the South African national oil company has concluded the acquisition of the stake of Sabre Oil in the Jubilee Oilfield.

The deal gives PetroSA access to crude from the huge Jubilee Field.

Reuters quoted Nosizwe Nokwe-Macamo, a senior official of PetroSA as telling the South African Parliament about the deal during a presentation on company’s annual report.

"We have bought Sabre Oil and Gas Holdings Ltd in Ghana, which gives us access to Jubilee Field and provides a strategic entry into the prolific Gulf of Guinea,” she said but could not provide details of the value of the deal.

However, sources in Accra say the deal might be worth around $365 million.

With the completion of the deal, PetroSA now owns interest in three assets: the producing Jubilee Field, the Deepwater Tano Block and the West Cape Three Points Block which represent about 4.05 percent stake.

Tullow Oil was said to have showed interest in buying the stake after Kosmos abandoned earlier plans of acquiring the Deepwater Tano Block.

But according to PetroSA’s Group CEO, Nosizwe Nokwe-Macamo, the acquisition is part of the company’s strategy “to increase its African footprint.”

This deal provides PetroSA with a unique opportunity to establish a presence in this highly-prospective region. We are very happy to be working with reputable partners such as Anadarko, Kosmos, Tullow and of course, our counterparts, the Ghana National Petroleum Corporation (GNPC),” Ms Nokwe-Macamo said.

“This is a significant opportunity for PetroSA. As a result of it, we will be able to increase our reserve portfolio,” she added.

Recently, Civil Society Group on Oil and Gas raised concerns over the bidding processes that enabled PetroSA to acquire Sabre Oil’s stake in the Jubilee Oilfield.

Although not entirely against foreign acquisition of assets in Ghana, they had argued that the process was not competitive enough to allow any Ghanaian entrepreneur to attempt to acquire the stake.

The Jubilee oil field is located 60km off-shore, straddling the Deepwater Tano and West Cape Three Points blocks in Ghana.

It was discovered in 2007 and production commenced in 2010. It is the largest oilfield in Ghana, with total proven reserves of around 600 million barrels.

Both the Deepwater Tano Block and the West Cape Three Points Blocks have existing oil and gas discoveries for which developments plans are in progress.

PetroSA, which also has exploration acreage in Egypt, Equatorial Guinea and Namibia, has embarked on an aggressive campaign to buy new assets and diversify its revenue base.