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US Justice Dept. declines bribery enforcement action against Kosmos in Ghana

  • SOURCE: | qwesa2big
  • The United States Department of Justice says it will not enforce action for bribery against Kosmos Energy for the oil producer’s conduct in Ghana, the Wall Street Journal reports citing a letter from the Department.

    According to the publication, Texas-based Kosmos Energy which has a stake in Ghana’s largest oil field, the Jubilee Oil Field, said Monday April 25, 2011 in an S-1 filing with the Securities and Exchange Commission of the US that it had disclosed in January 2009 a possible violation of the Foreign Corrupt Practices Act by Kosmos and its partners, the EO Group, in securing oil contracts at the Jubilee oilfield in Ghana.

    Kosmos said in the filing it cooperated fully with a Justice Department investigation and retained outside counsel to do an internal probe, which found “no basis for such allegations,” the report said. Adding that the filing said Kosmos received a letter of declination from the Justice Dept., and EO Group and its principals were told on June 2, 2010, by the agency that it closed the inquiry into the matter.

    Meanwhile, the Multilateral Investment Guarantee Agency (MIGA), a member of the World Bank Group and its partners have said they are extending the suspension of a $225 million political risk guarantee contract for the FPSO. MIGA did not say for how long the extension would last and no clear indication has been given as to when the investigation would be concluded.

    The floating production and storage offloading (FPSO), facility used for oil production at the field is being managed by MODEC, a Japanese contractor.

    Kosmos however has expressed concern that the investigation would affect its operations at the Jubilee oil field by increasing costs.

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