Kosmos Teak Find Is ‘Promising’ as Jubilee

Kosmos Energy LLC’s Teak discovery off west Africa “looks to be as promising” as the 800-million- barrel Jubilee offshore oil project, Ghanaian Trade Minister Hannah Tetteh said.

Kosmos, backed by private equity firms Warburg Pincus LLC and Blackstone Group LP, announced the Teak find off Ghana’s coast on Feb. 10. Kosmos operates the block and holds a 31 percent interest. Other partners in the field include state- owned Ghana National Petroleum Corp., Anadarko Petroleum Corp. and Tullow Oil Plc.

Kosmos, which filed for an initial public offering last month, is also a partner in the Jubilee field, which began production on Dec. 15. Jubilee’s output is expected to rise to 120,000 barrels a day later this year, according to Tullow Oil, the field’s operator.

While Ghana can now benefit from rising oil prices, “I hope it does not go up much above $100 a barrel,” Tetteh said in an interview in Washington today.

“I would be alarmed if the oil price goes to $120 a barrel,” she said. “We will not survive on oil alone as there will be a ripple effect because of higher energy costs.”