China appears to be upping its game to have a foothold in Africa’s energy resources with a reported move to rival Exxon Mobil’s bid to buy the stake of Kosmos Energy in Ghana’s Jubilee field.

The Wall Street Journal reports that the China National Offshore Oil Corporation (CNOOC) is in talks with the Ghana National Petroleum Corporation (GNPC) to make a bid for the Jubilee oil field that would rival Exxon Mobil’s $4 billion offer, citing unnamed sources familiar with the deal.

According to some reports, Chinese oil companies have announced plans to spend at least $16 billion to have access to African energy assets since 2006 to meet rising demand for fuel in its domestic market.

Last week, Exxon Mobil made a bid offer of $4 billion for the 30% stake held by Texas-based Kosmos Energy in the largest oil field to be discovered in West Africa in the last 10 to 15 years in Ghana.

News about the bid heightened interest in Ghana’s oil industry, with some industry players calling the development positive.

Meanwhile, some earlier reports in the Ghanaian media had suggested that the government of Ghana favours a deal with the Chinese. And the GNPC itself has expressed interest in buying the stake.

Ghana expects to produce about 500,000 barrels of oil a day by 2014.
Ghana is set to become one of Africa’s newest oil exporters in June 2010 when production begins at the offshore Jubilee field, which was discovered in June 2007 and has potential resources of as much as 1.8 billion barrels, according to Tullow.

The Jubilee oil field has 17 wells.


Source: GhanaBusinessnews.com