The attempt by Kosmos to sell its stake in Ghana's Jubilee oil field to energy giant ExxonMobil (NYSE:XOM) has been droped, as the government of Ghana continued to oppose the deal in order to allow state-run Ghana National Petroleum Corporation the first chance at acquiring it.
Ghana officials said in a statement, "Kosmos Energy announces that the agreement with ExxonMobil related to the acquisition of our Ghana business has been terminated."
The state-operated company said the deal with Exxon broke the laws of the country, leading to the abandonment of the deal.
Concerns the government of Ghana was interfering in the market were pushed aside by President John Atta-Mills, who said the priority was to be sure residents of Ghana received the benefits of the oil field.
He evidently doesn't realize his very statement confirms the government interfered in the private sector, and could and should be a warning to those looking to do business in the West African nation.
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