Active Commercial AidData Chinese Aid

CDB organizes $3.9 billion syndicated bridge loan to GNPC to facilitate its acquisition of 23.5% equity stake in Jubillee oil field from Kosmos Energy Limited

$3.9M USD

Funder	China Development Bank (CDB)
Recipient Organization	Ghana National Petroleum Corporation
Country	Ghana
Start Date	Jul 01, 2010
End Date	Jul 09, 2033
Duration	8,409 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`105603`

Grant Description

CDB organizes $3.9 billion syndicated bridge loan to GNPC to facilitate its acquisition of 23.5% equity stake in Jubillee oil field from Kosmos Energy Limited In July 2010, Ghana National Petroleum Corporation (GNPC) and China Offshore Oil Corporation (CNOOC) submitted an offer to purchase a 23.5% equity stake in Jubillee oil field (Africa's biggest offshore oil field) from Kosmos Energy Limited.

GNPC secured a $3.9 billion syndicated bridge loan facility agreement from a group of Chinese banks (led by China Development Bank) to facilitate its offer to acquire an equity stake in Jubillee oil field from Kosmos Energy Limited.

CNOOC reportedly issued a repayment guarantee in support of the loan and the borrower (GNPC) was expected to repay the loan in part by selling part of its (acquired) equity stake in Jubillee oil field to CNOOC.

However, before the syndicated bridge loan facility agreement went into effect, GNPC's Board of Directors needed to approve it and Ghana's Minister of Energy needed to recommend it to Ghana's Mininster of Finance for approval. It is unclear if these approvals were ever secured. Kosmos Energy Limited ultimately rejected the offer from GNPC and CNOOC.

📋 Staff Comments

According to a ‘secret strategy paper’ prepared by GNPC in 2010, it ‘secured the financing from the syndicated of Chinese banks required to demonstrate to Kosmos [Energy Limited] that we can conclude a purchase.’2. Some sources indicate that the syndicated Chinese bank loan was worth $5 billion rather than $3.9 billion and that it was to be used for both acquisition costs and capital expenditures. This issue merits further investigation.
At the time of the proposed acquisition, Kosmos Energy Limited was majority-owned by private equity firms Blackstone Group LP and Warburg Pincus LLC.
The Chinese project title is 收购Kosmo在Jubilee油田的股份进.

📚 Sources & References

中海油竞购加纳油田失利_能源_化工_原材料_经济观察网_2010-11-04_严凯
GUIDEGNPC Outdoors ‘Secret Strategy’
GNPC Mafia exposed!
GNPC’s ‘Secret Strategy Paper’
Duan Cui
Bid for Ghana Oil Field Rebuffed
In The Name Of Oil
Ghana Is Already Swimming In A Flood Of Debt
中海油海外收购加速 50亿美元夺非洲大油田
Ghana move for Kosmos oilfield stake
Ghana move for Kosmos oilfield stake Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.