Standard Chartered Bank brought to close the financing of Kosmos Energy Ghana HC’s share of the development of the Jubilee Oil Field, located off the coast of Ghana in West Africa. Kosmos Energy signed the documentation for $750m of debt facilities which will be secured against the oil in Kosmos Energy Ghana’s interest in the Jubilee Oil Field off the coast of Ghana. Kosmos Energy is a privately held international oil exploration and production company with a focus on West Africa. It is backed by private equity houses Warburg Pincus and The Blackstone Group.
Senior debt is $600 million and junior debt is comprised of two tranches; a $50m tranche 1 and a $100m tranche 2. Capital expenditure outlays are projected to run until 2011, with the debt fully repaid by 2015. The facilities include an early-draw tranche of up to $300m that Kosmos can access immediately on receipt of the Ghanaian government’s consent to the security package. Standard Chartered Bank was integral in structuring the transaction and is the Global Coordinator for the facilities, Co-Technical and Senior Facility Agent. BNP Paribas is Security Trustee, Junior Facility Agent and has the role of Hedging Coordinator Bank. Kosmos’ counsel was Slaughter and May whilst the lenders’ counsel was Clifford Chance.
Kosmos, operator of the West Cape Three Points Block, drilled the Mahogany-1 exploration well that discovered the Jubilee Field, one of the largest oil discoveries offshore West Africa. Kosmos and its partners are executing a phased development plan for the Jubilee Field, which is located on the West Cape Three Points Block and adjacent Deepwater Tano Block. Kosmos believes that phase-one development will produce in excess of the planned 300 million barrels of recoverable oil.
Kosmos Energy is the technical operator for the development of the Jubilee Unit and holds a 23.491% interest in the unit. Its affiliates include Tullow Oil plc, Anadarko Petroleum Corporation, Sabre Oil and Gas, EO Group and the GNPC. Regarding the two blocks, WCTP and Deepwater Tano, Kosmos Energy holds a 30.875% and 18% interest in them respectively.
Operis audited the financial model as prepared by Credit Suisse.