Ghana's Oil

a test to see if the resource curse can be avoided

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India-China resource competition to come?

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From the WSJ/Mint (an India-based news source):

India scouts for Africa hydrocarbon stake

New Delhi: State-owned Oil and Natural Gas Corp. Ltd (ONGC) and GAIL (India) Ltd are in talks with Ghana National Petroleum Corp. (GNPC) for acquiring stakes in hydrocarbon blocks in the African country.

GNPC wants to buy Kosmos Energy Llc’s stake in the Jubilee field and then sell it to firms such as ONGC and GAIL.

In an attempt to check China’s growing influence in Africa and provide a fillip to India’s efforts to secure hydrocarbon assets in the continent, around 23 African countries have been invited to participate in the second India- Africa hydrocarbons conference, being held by the petroleum and natural gas ministry in association with the Federation of Indian Chambers of Commerce and Industry.

The current breakdown of Jubilee field ownership:

  • Kosmos Energy LLC (US) owns a 23.49 percent stake (currently up for sale)
  • Tullow (EU) holds a 34.7 percent interest
  • Anadarko Petroleum Corp (US) controls 23.49 percent
  • Ghana National Petroleum Corporation holds 13.75 percent
  • Sabre Oil & Gas (US) owns 2.81 percent
  • EO Group (Ghana) has 1.75 percent

The story of competition for natural resources in Africa between India and China is not new, although Ghana’s oil development could invite this dynamic home. It will be interesting to see if a sovereign entity will be allowed to purchase a stake in the Jubilee field–and what that might mean for Ghana’s foreign relations–although it seems that private firms will still dominate the field.

Written by jasonized

7 December 2009 at 7:29 pm

Posted in Uncategorized

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