The Ghana National Petroleum Corporation (GNPC) has acquired a 7 percent Commercial Interest in both the Jubilee and TEN blocks, from Occidental Petroleum (OXY).

This acquisition cost $199 million and took effect on April 1, 2021.

“Consideration due OXY at completion was approximately USD165 million after taking into account closing adjustments,” GNPC said in a statement.

OXY had prior to this transaction acquired the Ghana assets of Anadarko.

This acquisition adds to GNPC’s existing Carried and Participating Interest (CAPI) of 13.64 percent in the Jubilee Field, and 15 percent in the TEN Field.

The corporation said 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 an additional interest in the two blocks),” it said.

This acquisition is in line with GNPC and the Government’s strategy of increasing the country’s participating stakes in viable oil blocks going forward.

This strategy also saw GNPC receive Cabinet approval to acquire stakes in Aker Energy and AGM Petroleum Ghana, in a much-criticised move.

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 cash flow for its activities.”

“There is also a debt write-off in excess of $30 million from KOSMOS Energy. Kosmos Energy has also agreed to train GNPC technical staff in support of GNPC’s quest to build operator capacity,” he added.