Jubilee partner Kosmos Energy, through its Kosmos Energy Finance International, is seeking for a loan from the World Bank’s International Finance Corporation (IFC) amounting to $100 million to undertake some developmental projects in the oil and gas sector in Ghana.
According to the IFC, the syndicated loan is to enable the Texas-based oil explorer raise capital to finance the projects in the Ghanaian fields which are “to complete the development of the Jubilee oil field in Ghana and complete the appraisal and development of its other hydrocarbon discoveries offshore Ghana.”
“These fields are located in the West Cape Three Points Block and the Deepwater Tano Contract Area south-southeast of the Cote D’Ivoire (Ivory Coast) and Ghana border,” IFC said.
The IFC says the total cost of the project is $3.8 billion and it is “proposing to provide a loan of up to $100 million in the facility. The Company (Kosmos) plans to finance the funding requirements through internally generated cash flow, the debt facility and shareholders’ equity.”
“Kosmos and the bank underwriters are currently in the syndication phase for which they are seeking IFC’s support and participation,” private arm of the World Bank said on its website.
IFC said its board is expected to meet December 15, 2011 to take a final decision on the matter.
Anticipated development impacts of the project, according to IFC are generating substantial revenues for the Government, stimulating economic activity through creation of demand for local goods and services, providing opportunities to develop domestic energy sources such as gas to address the country’s energy needs, promoting further foreign direct investments in the country and in the region, particularly in the hydrocarbon sector, among others.