Accra, Ghana/Washington, D.C., July
13, 2009—IFC, a member of the World Bank Group, on Monday signed a
loan agreement for $100 million with Kosmos Energy, one of the key partners
developing Ghana’s Jubilee field, an offshore oil and gas project that
will help diversify Ghana’s economy and meet domestic power demand.
IFC’s senior and junior loan tranches
are part of a $750 million debt package for U.S.-based Kosmos that IFC
helped mobilize, primarily from commercial banks. Earlier this year, IFC
signed a $115 million loan agreement with British Tullow Oil, another key
Jubilee partner, bringing IFC’s support for the project to $215 million.
Kosmos and Tullow are independent oil and gas exploration and production
The project, located in deep water some
60 kilometers off the coast of Ghana, will produce domestic crude oil,
generating foreign exchange income for the country and substituting expenditures
for oil imports. It is also expected to boost government revenues, providing
much needed income against the background of the global economic downturn.
“IFC’s support for the Jubilee project
is critical for the Jubilee partners and for Ghana,” said W. Greg Dunlevy,
Kosmos Executive Vice President and Chief Financial Officer. “IFC’s loan
at this time of tight credit markets has been key in securing commercial
bank financing in parallel. Equally important, IFC is assisting us in achieving
the broad stakeholder participation that we are aiming for.”
IFC is supporting Kosmos and Tullow
in preparing environmental and social management plans for the project.
The loans also are tied to other milestones such as management of biodiversity
conservation, safehandling of waste, and emergency response procedures.
Next to oil, the Jubilee field is expected
to produce gas to support about 400 megawatts of new power generation,
equivalent to about 30 percent of Ghana’s annual power consumption. The
project also will stimulate the Ghanaian economy by purchasing goods and
services locally. IFC is advising the companies on enhancing the project’s
benefits for local communities and stakeholder engagement.
“The Jubilee oil field is a landmark
project for Ghana,” said Somit Varma, IFC’s Global Head for Oil, Gas,
Mining, and Chemicals. “The project will provide a new and vital revenue
source in a country that has one of the best governance track records in
IFC, a member of the World Bank Group,
creates opportunity for people to escape poverty and improve their lives.
We foster sustainable economic growth in developing countries by supporting
private sector development, mobilizing private capital, and providing advisory
and risk mitigation services to businesses and governments. Our new investments
totaled $16.2 billion in fiscal 2008, a 34 percent increase over the previous
year. For more information, visit www.ifc.org.