Kosmos Energy and Ghana (A) & (B)

Kosmos Energy (Kosmos) was founded in 2003 by a small group of oil and gas industry veterans backed by private equity capital. The company's original plan was to explore for oil along the West African coast. If a commercial discovery was made, Kosmos would sell the asset to an exploration and production (E&P) firm. In 2007, Kosmos and its partners announced a major discovery in deepwater offshore Ghana. Three years later in December 2010, Kosmos was at a crossroads. First oil from the Ghana discovery, now called Jubilee, was delivered in November 2010. Earlier in the year, a sales agreement with ExxonMobil for Kosmos’ interests in Ghana was terminated. Kosmos now had to decide on its corporate future and its presence in Ghana. Should the company remain a pure “E” company or expand to E&P, and should it retain its interest in Jubilee's development? Integral to both questions was how the company could either raise capital for, or reap capital from, the Jubilee field.