0:00:02 > 0:00:08This programme contains some strong language
0:00:52 > 0:00:55- WOMAN:- Where are we right now? Where are we standing?
0:01:10 > 0:01:14I heard stories many times that when oil is found in a place
0:01:14 > 0:01:17everyone starts thinking about what he can get for himself.
0:01:50 > 0:01:54SHOUTING CONTINUES
0:02:21 > 0:02:24'The major stock indexes all hit multi-year highs yesterday
0:02:24 > 0:02:27'but it was the Dow that generated the headlines.'
0:02:27 > 0:02:29'The market has been on something of a tear.'
0:02:29 > 0:02:32'Oil prices started edging towards a record last week.'
0:02:32 > 0:02:36'The price of oil hit another high overnight. 92 per barrel.'
0:02:36 > 0:02:39'We've never been where we are today.'
0:02:46 > 0:02:49It's Copter 4, do you read me?
0:02:51 > 0:02:54- 'We read you, Copter- 4.' I shall be touching down in just a few minutes.
0:03:22 > 0:03:26'The price of crude oil climbed 10 a barrel last month,
0:03:26 > 0:03:29'20 a barrel higher than a year ago.'
0:03:29 > 0:03:31'Some analysts say it's supply concerns.
0:03:31 > 0:03:34'We've had a lot of reports on the past few days of pipelines
0:03:34 > 0:03:36'being blown up in the Niger Delta.'
0:03:49 > 0:03:52'Investors are looking for a place to make money
0:03:52 > 0:03:56'and the thing that seems to be going up is the price of crude oil.'
0:04:12 > 0:04:14Risk is an important piece of this.
0:04:14 > 0:04:17Just the notion of Kosmos looking for oil in a country
0:04:17 > 0:04:21that had never had it before was extremely risky.
0:04:22 > 0:04:24There was a high probability that you would invest
0:04:24 > 0:04:28some amount of money and you'd get nothing back.
0:04:28 > 0:04:32But if they were successful in achieving what their goal was,
0:04:32 > 0:04:34then the prize would be very, very large.
0:04:36 > 0:04:37And hence the reason to do it.
0:04:37 > 0:04:42In the plan we are first oil in second half of 2010.
0:04:42 > 0:04:46It takes a couple of years to design the plan, build the equipment,
0:04:46 > 0:04:47install it.
0:04:47 > 0:04:52We are looking at an 11 billion development on a billion barrels,
0:04:52 > 0:04:54net to us 2.2 billion.
0:04:54 > 0:04:56Net to the company.
0:04:56 > 0:05:01This is a substantial oil project.
0:05:02 > 0:05:07It's important we generate enough reward to justify our risk
0:05:07 > 0:05:10but when there's a lot of money at stake,
0:05:10 > 0:05:12then people's focus gets more intense
0:05:12 > 0:05:17and more people from the outside
0:05:17 > 0:05:20and on the periphery will look to get a piece of it.
0:05:21 > 0:05:24There's hundreds of examples of that around the world,
0:05:24 > 0:05:25outside of the oil business,
0:05:25 > 0:05:28I don't think that is endemic to the oil business.
0:05:28 > 0:05:30But in the oil business it is quite large.
0:05:30 > 0:05:32You know, in our discussion today we're talking
0:05:32 > 0:05:35hundreds of millions and billions of dollars.
0:05:35 > 0:05:37That doesn't happen very often.
0:05:53 > 0:05:56Hi, how are you? Good to see you.
0:05:57 > 0:06:01- Just got back the news we recovered oil out of our sample too.- Yes.
0:06:01 > 0:06:04- Good oil.- It is.
0:06:04 > 0:06:07- About 54 millilitres.- About what?
0:06:07 > 0:06:11About 54, yes, about 54 millilitres.
0:06:11 > 0:06:14- OK.- Previously it was 15 and they found 28 more.- Yes. It's good.
0:06:16 > 0:06:18- It's all good.- Yes, yes.- OK.
0:06:18 > 0:06:24'Kosmos was an idea that Jim Musselman had back in 2002.
0:06:24 > 0:06:26'Jim came to visit me.'
0:06:26 > 0:06:30He was just thinking about starting his new business at the time.
0:06:30 > 0:06:34Jim is bigger than life, also physically quite large, as you know.
0:06:34 > 0:06:38I don't mean that in a negative sense, he's just a tall guy
0:06:38 > 0:06:40and he's very charismatic.
0:06:41 > 0:06:47And Jim has this unique entrepreneurial aspect to him.
0:06:47 > 0:06:51He's a great optimist and he has a lot of self-confidence.
0:06:51 > 0:06:53And that's what came through.
0:06:57 > 0:07:00I think I could buy one of those umbrellas
0:07:00 > 0:07:03and you think it'd be all right if I carried one of those over my head?
0:07:03 > 0:07:07- The work you are coming to do in Ghana merits respect.- Thank you.
0:07:07 > 0:07:10All of us give you that full recognition.
0:07:10 > 0:07:13Well, you are very kind. We take responsibility very seriously.
0:07:13 > 0:07:16We know how important it is for the country
0:07:16 > 0:07:19- and we intend to do a really good job.- Excellent.
0:07:19 > 0:07:22- You're going to be proud of us, I promise you.- We are proud of you.
0:07:22 > 0:07:24- Let's go.- Don't make the King wait!
0:07:26 > 0:07:29'Jim has always been my senior partner and I look up to him
0:07:29 > 0:07:33'and he is always there to support me. I'm there to support him.'
0:07:35 > 0:07:38This is an old drill bit from a well that we drilled in Egypt
0:07:38 > 0:07:40many, many years ago.
0:07:40 > 0:07:48I just kept it as a memento of those days and as an inspiration
0:07:48 > 0:07:53for the dreams that we had to work in Africa and find more oil.
0:08:02 > 0:08:06GEORGE OWUSU:
0:08:09 > 0:08:11JIM MUSSELMAN:
0:08:13 > 0:08:14Your Majesty,
0:08:14 > 0:08:18my name is Jim Musselman, I am president of Kosmos Energy.
0:08:18 > 0:08:20We hope that we can serve you well
0:08:20 > 0:08:23and we hope we lead to a lot of prosperity for this country
0:08:23 > 0:08:26as we go forward with our oil and gas investment in this country.
0:08:26 > 0:08:28So, thank you so much for being here.
0:08:58 > 0:09:01Thank you so much. Thank you for the opportunity.
0:09:01 > 0:09:04- It's a wonderful place here, so thank you so much.- Thank you.
0:09:18 > 0:09:20Yes, the name of the company is Kosmos Energy.
0:09:20 > 0:09:22We're based in Dallas, Texas.
0:09:22 > 0:09:26GNPC is a very good company that runs your energy business
0:09:26 > 0:09:30and together we're going to do our best to make Ghana
0:09:30 > 0:09:33- much more profitable in the future. - Thank you.
0:09:33 > 0:09:34You're welcome.
0:09:36 > 0:09:38OK.
0:09:55 > 0:09:58Hi, nice to see you. Thank you. Thank you.
0:10:02 > 0:10:06George, and away we go. That was spectacular.
0:10:06 > 0:10:09How often do you get to see something like that? That was wonderful.
0:10:09 > 0:10:15'We came to Ghana because of George Owusu.
0:10:15 > 0:10:18'We got our contract for the block from him.'
0:11:15 > 0:11:18PHONES RING
0:11:25 > 0:11:27WOMAN: Good morning, Kosmos.
0:11:31 > 0:11:34When I came here I was the only employee.
0:11:59 > 0:12:00The discovery of oil helped?
0:12:15 > 0:12:18Mr President, before you leave office,
0:12:18 > 0:12:21would you want to do some sort of a press conference?
0:12:21 > 0:12:23- It's very important.- OK.
0:12:23 > 0:12:29Especially we will capture the flaring or gushing or whatever
0:12:29 > 0:12:32- so that Ghana will see.- Yes.
0:12:32 > 0:12:35We're testing the well to see what the reservoir is going to deliver.
0:12:35 > 0:12:38Unfortunately we're not... we're having to burn the oil,
0:12:38 > 0:12:41we don't have any way to collect it right now.
0:12:41 > 0:12:45So, you mean you pump up how many barrels?
0:12:45 > 0:12:48We open the well bore to the atmosphere
0:12:48 > 0:12:50- and the oil flows out...- Gushes out?
0:12:50 > 0:12:54Yes, at 40, around 4,000 barrels a day right now.
0:12:54 > 0:12:57We're doing it in the name of science.
0:12:57 > 0:12:59LAUGHTER Don't do the arithmetic!
0:12:59 > 0:13:01It will hurt your heart if you think about it.
0:13:06 > 0:13:09Mr President, this is a marvellous reservoir, world-class.
0:13:09 > 0:13:12We've got a tiger by the tail but that's a high-class problem
0:13:12 > 0:13:14they have to learn to deal with.
0:13:14 > 0:13:17You must be a magician to be holding a tiger by the tail!
0:13:26 > 0:13:30Yes, sir, I've got Mrs Joel on board, five passengers total.
0:13:32 > 0:13:36- We should be on the rig in about five minutes.- No problem.
0:13:46 > 0:13:50We're coming in from the south-east, wind's behind us, clear of flare.
0:13:52 > 0:13:54How are you? Good to see you.
0:13:56 > 0:14:01- Have you heard about our well? It's flowing back nicely.- Yes.
0:14:01 > 0:14:04- Looks exciting.- Yes, it is.
0:14:07 > 0:14:09This field is going to be worth a lot,
0:14:09 > 0:14:12a lot of money once we're all set up.
0:14:13 > 0:14:15What is the price now?
0:14:15 > 0:14:20The price of oil went up 15 between Tuesday and tonight.
0:14:26 > 0:14:28'To a flowing well in Ghana.'
0:14:28 > 0:14:31- Flowing well.- Yeah, yeah, yeah.
0:14:31 > 0:14:34- Flowing oil.- Flowing oil.
0:14:34 > 0:14:39- For the first time in the history of the country!- Exactly. Flowing oil.
0:14:46 > 0:14:48I was always comfortable starting companies
0:14:48 > 0:14:51where it's just been me and a secretary to help me out.
0:14:53 > 0:14:56- Are you the first oil guy in your family?- Uh-huh.
0:14:56 > 0:14:57What did your dad think about it?
0:14:57 > 0:14:59I think he was proud of me,
0:14:59 > 0:15:03I guess, I don't know. People...
0:15:03 > 0:15:07We're not great communicators out here, you know, you don't...
0:15:07 > 0:15:10you don't tell one another how one feels too much
0:15:10 > 0:15:14and so I don't really know but I think he was proud.
0:15:16 > 0:15:17These people worked hard.
0:15:17 > 0:15:20You are working to make this a better place
0:15:20 > 0:15:24and make sure that it gets passed on to your children.
0:15:24 > 0:15:27I want to give to my children more than I received
0:15:27 > 0:15:30and that's important to me to add to it.
0:15:34 > 0:15:38The American model for people making money out of a single oil well
0:15:38 > 0:15:41- is so different from the rest of the world.- Oh, yeah,
0:15:41 > 0:15:44because the minerals in the state of Texas, for instance,
0:15:44 > 0:15:47are owned by individuals, they're not owned by the state.
0:15:49 > 0:15:52You don't have a state-run oil company
0:15:52 > 0:15:55and the money is actually going into the hands of people,
0:15:55 > 0:15:59as opposed into the state coffers to be stolen by whoever,
0:15:59 > 0:16:02which is the Nigerian model.
0:16:03 > 0:16:05Do you ever worry about Ghana becoming like Nigeria?
0:16:05 > 0:16:09Not really because the people of Ghana can see good things
0:16:09 > 0:16:11coming for them personally in the future.
0:16:11 > 0:16:15It's human nature to want opportunity,
0:16:15 > 0:16:17that's pure and simple what it's all about.
0:16:56 > 0:16:59By the time we are through with the assignment
0:16:59 > 0:17:02you will find what the Niger Delta is like.
0:17:03 > 0:17:07It's not an easy place to survive in.
0:17:07 > 0:17:11And not an easy place to develop.
0:17:53 > 0:17:55And should the government be doing more too?
0:18:00 > 0:18:02What about corruption?
0:18:02 > 0:18:04Do you believe that corruption is a problem?
0:19:12 > 0:19:14How do you fight corruption?
0:19:44 > 0:19:47Well, thank you so much for your time.
0:20:29 > 0:20:32'Armed groups are sabotaging oil exports
0:20:32 > 0:20:35'in one of the world's great oil-producing regions.'
0:20:35 > 0:20:39'People have been cheated by the greedy central government
0:20:39 > 0:20:41'and this is why tensions are so high.'
0:22:01 > 0:22:04You like the idea of being on TV, huh?
0:22:25 > 0:22:28Tell me about... Are you married, Emi, or not?
0:22:32 > 0:22:35And how often do you get to see him?
0:23:30 > 0:23:32You hear this term, "big man".
0:23:32 > 0:23:35What makes somebody a big man in Nigeria?
0:24:18 > 0:24:21Oil is the means of getting big money. Really.
0:24:23 > 0:24:28But the big money comes to the federal government.
0:24:50 > 0:24:53It seems to me that many people in Nigeria want to be a big man.
0:24:53 > 0:24:55What do you think?
0:25:38 > 0:25:41THEY DRUM AND CHANT
0:26:14 > 0:26:17GUNSHOTS
0:26:42 > 0:26:44'More bad news for the world's oil markets.
0:26:44 > 0:26:47'A section of an oil pipeline belonging to Chevron oil company
0:26:47 > 0:26:50'has been blown up in the western Niger Delta,
0:26:50 > 0:26:53'shutting down even more Nigerian oil production.
0:26:53 > 0:26:57'This attack highlights the vulnerability of the oil infrastructure here.
0:26:57 > 0:27:00'So, more jitters for the world's oil markets.'
0:27:00 > 0:27:03Half of Nigeria's oil is off-line right now.
0:27:03 > 0:27:05So over a million barrels a day
0:27:05 > 0:27:08of light, sweet, crude oil that we really can't replace.
0:27:08 > 0:27:09That's a very big factor,
0:27:09 > 0:27:12one of the bigger factors in the market right now.
0:27:12 > 0:27:16The militants in the Delta have proven all of Nigeria's
0:27:16 > 0:27:18oil facilities are within their reach.
0:27:35 > 0:27:39'This week President Kufuor's government called the first
0:27:39 > 0:27:40'oil and gas conference.
0:27:40 > 0:27:43'A key question will be how to divide future income
0:27:43 > 0:27:46'between foreign companies and the Ghanaian government.
0:27:46 > 0:27:49'Ghana might draw heavily from the experience of Norway,
0:27:49 > 0:27:52'one of the major oil producers in the world.'
0:28:00 > 0:28:04Number-one problem with raw material is that it tends to establish
0:28:04 > 0:28:06an enormous cash machine...
0:29:14 > 0:29:16- Mr Abankwa, sir. - Good idea to do this.
0:29:16 > 0:29:19And everybody seems to be very committed to it which is very good.
0:29:19 > 0:29:22The only part I didn't like was the guy from Norway
0:29:22 > 0:29:25talking about taxing the oil companies to the end.
0:29:25 > 0:29:27I don't like that part.
0:29:29 > 0:29:32- For the guys that come later! - Yes, the later guys.
0:29:32 > 0:29:34The next discovery, the next block.
0:29:37 > 0:29:38That's what we want to hear!
0:29:40 > 0:29:43I know, I know, I was teasing you, but I thought that was a bit...!
0:30:00 > 0:30:03Kosmos' strategy was to be more frontier orientated,
0:30:03 > 0:30:06where there were not yet known hydrocarbons
0:30:06 > 0:30:09and where the relationships with the government,
0:30:09 > 0:30:12the economic split with the government,
0:30:12 > 0:30:16would leave more available to those doing the early drilling.
0:30:16 > 0:30:20That was the Kosmos strategy and part of the attraction,
0:30:20 > 0:30:24so, clearly high risk, but also much higher reward.
0:30:24 > 0:30:28It was a good contract for us at the time because there was no oil
0:30:28 > 0:30:32in the country. It's supply and demand. It's pure supply and demand.
0:30:32 > 0:30:36How can you attract capital to come into your country if you
0:30:36 > 0:30:42don't really have a really attractive exploration block to offer?
0:30:42 > 0:30:45You have to reduce your contract down where it looks like a good deal,
0:30:45 > 0:30:49where the risk/reward is proper because you are taking huge...
0:30:49 > 0:30:53We took huge risk to come into a country that had no oil.
0:31:11 > 0:31:15We are only getting about 5% of the value,
0:31:15 > 0:31:18the total value of exports of gold.
0:32:08 > 0:32:10'Ghana's voters are to choose a new president
0:32:10 > 0:32:13'as current president John Kufuor prepares to step down
0:32:13 > 0:32:14'after eight years in power.'
0:32:16 > 0:32:19'The incumbent president John Kufuor is not running.
0:32:19 > 0:32:22'How close is this contest?'
0:32:22 > 0:32:24'It is a structurally counted sheet.'
0:32:56 > 0:32:59This country has a lot of resources
0:32:59 > 0:33:03but the NPP government has not used those resources
0:33:03 > 0:33:06for the people of this country.
0:33:17 > 0:33:20We just wanted to ask you about the oil money.
0:33:20 > 0:33:23Have you seen the contract between Kosmos and the government?
0:33:23 > 0:33:26- We haven't. I haven't. - Do you know what's in it?
0:33:26 > 0:33:29I don't know what's in it but whatever it is,
0:33:29 > 0:33:32we will take a look at it when we come into government.
0:33:32 > 0:33:35It's what happens normally that it's not everything that
0:33:35 > 0:33:38you see on paper that is there.
0:33:38 > 0:33:40We want to go through all of the details
0:33:40 > 0:33:44and look at it very carefully but we shall be guided by only
0:33:44 > 0:33:47what is in the best interest of our dear nation.
0:33:47 > 0:33:49If you felt it was in the best interest of your nation,
0:33:49 > 0:33:53- would you be willing to change the contract?- Why not? Why not?
0:33:53 > 0:33:56There is no doubt about it,
0:33:56 > 0:33:58I have to act in the interest of the country
0:33:58 > 0:34:01and I'm not going to say that because the government has committed us
0:34:01 > 0:34:04in the wrong way, I'm going to follow suit.
0:34:04 > 0:34:06Whatever I do I'm not going to be vindictive,
0:34:06 > 0:34:11I'm not going to be partial, I'm only going to follow my conscience
0:34:11 > 0:34:14and what is in the best interests of our dear nation.
0:34:29 > 0:34:32"Opposition leader is declared the winner
0:34:32 > 0:34:34"of Ghana's presidential election." Um...
0:34:34 > 0:34:38Yes, it's on Atta Mills, who was the opposition party,
0:34:38 > 0:34:40ended up beating Akufo-Addo in the election.
0:34:41 > 0:34:45I imagine that a change in government is sort of a nerve-racking time.
0:34:45 > 0:34:49You know what you had and you learn how to deal with it,
0:34:49 > 0:34:51but you don't know the new guy
0:34:51 > 0:34:53so there's a big unknown, there's a question in the air.
0:34:53 > 0:34:56There is, there is certainly a lot of places.
0:34:56 > 0:34:59I think Ghana, in my mind anyway,
0:34:59 > 0:35:01it's mitigated to some extent because
0:35:01 > 0:35:03new guys, old guys, whatever,
0:35:03 > 0:35:06they all believe in the rule of law and they're all
0:35:06 > 0:35:10well-educated, good people that will do the right thing for their country
0:35:10 > 0:35:13and that's... We're doing the right thing for their country so
0:35:13 > 0:35:15I don't... If we were some scallywags,
0:35:15 > 0:35:19perhaps you would worry about who these new guys are and all of that,
0:35:19 > 0:35:23but we're pretty straight-ahead kind of people
0:35:23 > 0:35:27and I think they know that and so it shouldn't make any difference.
0:36:12 > 0:36:14Patrick, what is that that they're doing?
0:38:27 > 0:38:29'The stock market took another beating today.
0:38:29 > 0:38:32'The Dow industrial has lost about 440 points.
0:38:32 > 0:38:34'Add that to yesterday's similar loss
0:38:34 > 0:38:38'and you get the Dow's worst two-day performance since 1987.'
0:38:38 > 0:38:41'The big private equity company Blackstone lost more than
0:38:41 > 0:38:44'0.5 billion last quarter so the bad news just doesn't stop.'
0:38:45 > 0:38:48Oil is off 2.33 now.
0:38:49 > 0:38:52It's quite frightening when you're dependent on a commodity
0:38:52 > 0:38:57that's gone from 140 to 30-something in a nanosecond.
0:38:57 > 0:39:00We're thinking about what's the company worth,
0:39:00 > 0:39:04to see who might, in fact, be interested
0:39:04 > 0:39:07in perhaps buying the asset.
0:39:08 > 0:39:11We have a data room in place where we have got all
0:39:11 > 0:39:15the geologic records to show the world what we've discovered.
0:39:15 > 0:39:18Exxon Mobil's in the data room today
0:39:18 > 0:39:22and at some point in time we're going to be receiving bids here.
0:39:22 > 0:39:25Let's talk a little bit about why you're selling right now.
0:39:25 > 0:39:28Is it Blackstone and Warburg Pingus who make that choice?
0:39:28 > 0:39:30Well, yes, it ultimately will be, yes.
0:39:30 > 0:39:34It will happen because it's their money.
0:39:34 > 0:39:38Private equity guys need to get the kind of returns that
0:39:38 > 0:39:40their investors expect from them
0:39:40 > 0:39:44but when's the inflection point, where you can get paid enough
0:39:44 > 0:39:50for the potential upside, but you don't give it away?
0:39:51 > 0:39:55I would think you might be a little sad to see Jubilee go.
0:39:55 > 0:39:59I'm surprised to hear you sounding so calm about the whole thing.
0:39:59 > 0:40:01Well, again it's...
0:40:01 > 0:40:05You have to be pragmatic about where things are
0:40:05 > 0:40:09and there's so much capital that's needed
0:40:09 > 0:40:14and this is not exactly a capital-rich environment right now.
0:40:25 > 0:40:27We also heard that Exxon Mobil
0:40:27 > 0:40:31ask about conflicts from Ghanaian Council,
0:40:31 > 0:40:36has called Bill Hayes to find out whether there's conflicts here
0:40:36 > 0:40:41and there or what. And so... And try and find a firm,
0:40:41 > 0:40:45a Ghanaian firm that they could use so that's obviously positive.
0:40:45 > 0:40:49- GNPC would really love an Exxon Mobil, yes.- Interesting.
0:40:49 > 0:40:52- They just take the pot to another level.- Right.
0:40:52 > 0:40:57I'm almost tempted to just go to an Exxon site. OK, come on, guys.
0:40:57 > 0:41:00- Why don't you go and pre-empt?- Yeah.
0:41:01 > 0:41:04Do you want to know a number and we'll just point and whisper
0:41:04 > 0:41:06in your ear and tell you what it would take?
0:41:06 > 0:41:11They could go to the safe and pull it out and pay you as you left!
0:41:11 > 0:41:13THEY LAUGH
0:41:13 > 0:41:16"You want that in hundreds or 20s?"
0:41:17 > 0:41:19- Anyone.- OK.
0:41:19 > 0:41:21How much money will you make
0:41:21 > 0:41:25if you sell this Jubilee prospect for what you think it is worth?
0:41:25 > 0:41:28We think our Ghanaian asset's worth somewhere between four
0:41:28 > 0:41:31and five billion dollars - to Kosmos.
0:41:31 > 0:41:33It's a big boy deal.
0:41:33 > 0:41:35It's worth a lot of money.
0:41:35 > 0:41:38You probably just ought to mount a camera here full-time.
0:41:38 > 0:41:40It's going to be nuts!
0:42:42 > 0:42:44We were trying to sell the company
0:42:44 > 0:42:47but we were going about our business as if we were not going to sell.
0:42:49 > 0:42:52So by this time Kosmos, little Kosmos
0:42:52 > 0:42:55is in the process of spending hundreds of millions of dollars
0:42:55 > 0:42:58to put together this project and we were all on
0:42:58 > 0:43:04a real tight timeline to get to first oil by the end of 2010.
0:43:09 > 0:43:13Here was Kosmos Energy with a large interest in this wonderful asset.
0:43:14 > 0:43:18And we were challenged financially because of the financial crisis.
0:43:18 > 0:43:21When one is in a distressed situation financially,
0:43:21 > 0:43:24the vultures come circling,
0:43:24 > 0:43:28and that came in the form of... in many forms.
0:43:42 > 0:43:47All of a sudden I get a very legal letter from Anadarko,
0:43:47 > 0:43:52saying that they have grave concerns about Foreign Corrupt Practice Act
0:43:52 > 0:43:57violations by Kosmos Energy and wanting to conduct
0:43:57 > 0:44:00a complete and thorough investigation.
0:44:00 > 0:44:03FCPA stands for Foreign Corrupt Practice Act.
0:44:03 > 0:44:05And what does the Foreign Corrupt Practice Act say?
0:44:05 > 0:44:09It basically says that if you are a US company
0:44:09 > 0:44:14you can't bribe an official of a foreign country.
0:44:14 > 0:44:17You can go to jail, there's all kinds of bad fines
0:44:17 > 0:44:22and it's bad, so, I mean, it's a very stiff, stringent law.
0:44:25 > 0:44:27Hi, George, I just got your e-mail.
0:44:27 > 0:44:31This is not just an investigation of yourselves,
0:44:31 > 0:44:34it's also an investigation of Kosmos, the way I read it.
0:44:34 > 0:44:38I mean, "Was EO Group set up by Kosmos to act as an intermediary
0:44:38 > 0:44:40"in its negotiations with the Ministry of Energy?"
0:44:40 > 0:44:42I mean, that's...
0:44:42 > 0:44:45Right. Right.
0:44:49 > 0:44:53We got our licence because of George Owusu and the EO Group,
0:44:53 > 0:44:58supposedly the payments we make to EO Group, as a success fee,
0:44:58 > 0:45:02supposedly that was passed on to Kufuor and others.
0:45:02 > 0:45:04Now, we were great friends with Kufuor
0:45:04 > 0:45:09and the new government did not like Kufuor, they were blood enemies.
0:45:09 > 0:45:13They said that we'd done something really bad and dirty
0:45:13 > 0:45:15with regard to the Kufuor administration
0:45:15 > 0:45:19and that we were participants in some sort of a bribery
0:45:19 > 0:45:22or whatever in order to get this licence.
0:45:22 > 0:45:25The only thing that led them to do that is that the block
0:45:25 > 0:45:28had become very valuable, it's worth billions of dollars now.
0:45:58 > 0:46:00We are conducting investigations.
0:46:00 > 0:46:03Under what circumstances were
0:46:03 > 0:46:06those contracts negotiated and signed?
0:46:06 > 0:46:08Was everything done,
0:46:08 > 0:46:10not only in accordance with the letter of the law, but with
0:46:10 > 0:46:14the spirit of the law, for the betterment of the Ghanaian people?
0:46:14 > 0:46:16I asked Atta Mills during the election,
0:46:16 > 0:46:20"Would you be willing to change the terms of the original contract with Kosmos?"
0:46:20 > 0:46:23And he said, "Absolutely". What do you think of that statement?
0:46:23 > 0:46:27Well, I think that it's an accurate statement.
0:46:27 > 0:46:31This is why we are actually pursuing this investigation.
0:46:31 > 0:46:36It's in pursuance of transparency, we must think of the nation.
0:46:36 > 0:46:41This is the thing that in Africa we find very difficult to do
0:46:41 > 0:46:46as a people. You know, we put our own interest first.
0:46:46 > 0:46:49Do you know when this is going to be resolved?
0:46:49 > 0:46:51In the very near future.
0:46:54 > 0:46:57We get a lot of questions about this FCPA stuff now.
0:46:57 > 0:47:01So we just need to, again, box that up.
0:47:01 > 0:47:04The way I sold it and we should spin it, this lot,
0:47:04 > 0:47:07"The partnership decided to go and do some
0:47:07 > 0:47:10"full and complete due diligence before spending 3 billion.
0:47:10 > 0:47:11"We did our own.
0:47:11 > 0:47:16- "We've got this great file..." - It's succinct and it says it all.
0:47:16 > 0:47:18Yes, and we need to get something in the data room
0:47:18 > 0:47:20which just addresses it.
0:47:20 > 0:47:23It is just a placeholder for the legal due diligence
0:47:23 > 0:47:26because there is just nothing there right now.
0:47:26 > 0:47:28And people are asking the question.
0:47:28 > 0:47:31Well, it's a legitimate, obvious question that,
0:47:31 > 0:47:35at this juncture, you need to know the answer to that.
0:47:36 > 0:47:38'We were under huge pressure'
0:47:38 > 0:47:41and we kept saying, "There's nothing to this,"
0:47:41 > 0:47:44but the fact that we got sort of indignant
0:47:44 > 0:47:47that they were questioning our integrity they saw as a red flag.
0:47:47 > 0:47:52They wanted to interview me and Brian and all of senior management,
0:47:52 > 0:47:55they wanted to send in a SWAT team of lawyers to come and interview us.
0:47:55 > 0:48:01Finally our board of directors said,
0:48:01 > 0:48:08and this was when all of the financial crisis was melting down.
0:48:08 > 0:48:10"We got to sell, we've got to sell, we've got to sell."
0:48:10 > 0:48:14And the Board of Directors says, "We can't have any kind of
0:48:14 > 0:48:16"smell of any FCPA because we're going to sell this company,
0:48:16 > 0:48:20"we can't have that." And so they said, "Do whatever they want."
0:48:21 > 0:48:23It was very stressful
0:48:23 > 0:48:26because FCPA being tossed around can reduce market value.
0:48:26 > 0:48:30The goal of the venture capitalist is to maximise profit.
0:48:31 > 0:48:33Can you get the cash?
0:48:33 > 0:48:35Or will there be so many other people
0:48:35 > 0:48:39and entities involved that you can't earn a profit?
0:50:07 > 0:50:10WOMAN ON TELEVISION:
0:51:00 > 0:51:03Do you think that this investigation is related to
0:51:03 > 0:51:06the fact that they believe Kosmos got such a sweet deal?
0:51:51 > 0:51:53You know, the tragedy of this whole thing is under
0:51:53 > 0:51:57the Kufuor administration we had a very good relationship with them
0:51:57 > 0:52:00cos we work very hard at it, we spend lots of time in the country.
0:52:00 > 0:52:03Well, some people might hear what you are saying right now
0:52:03 > 0:52:05as kind of ironic, given where your relationship has gone with...
0:52:05 > 0:52:08Where it's gone with who? With the government?
0:52:08 > 0:52:10- With the Ghanaian government. - Yes, I agree.
0:52:10 > 0:52:13- It's... Well, and there's a reason for that.- What's the reason?
0:52:13 > 0:52:15I was removed.
0:52:17 > 0:52:19Our board of directors came and said,
0:52:19 > 0:52:23"We've decided to make a change, and we want to make a change
0:52:23 > 0:52:28"because we've lost confidence in you." I said, "What have I done?"
0:52:28 > 0:52:31"We've just lost confidence in you. You can't get along with...
0:52:31 > 0:52:33"You know, you've got this FCPA problem,
0:52:33 > 0:52:35"you can't get along with the government,
0:52:35 > 0:52:37"you yelled at the Minister,
0:52:37 > 0:52:40"and we can't get a POD signed, all of these things.
0:52:40 > 0:52:44"We've just lost confidence in you, we're going to make a change."
0:52:44 > 0:52:46I said, "Well, who are you going to hire?"
0:52:46 > 0:52:48They said "We're going to elevate Brian."
0:52:52 > 0:52:56I said, "This makes no sense. It makes absolutely no sense.
0:52:56 > 0:52:58"You're going to, you're just going to shunt me aside
0:52:58 > 0:53:00"and bring someone else in,
0:53:00 > 0:53:02"it's going to make you look terribly weak
0:53:02 > 0:53:05"with the government of Ghana that all of a sudden
0:53:05 > 0:53:08"you're backing down in front of their demands or whatever,
0:53:08 > 0:53:13"and number two, you're conceding we've got a FCPA violation going...
0:53:13 > 0:53:15"I mean an investigation going on
0:53:15 > 0:53:19"and you're going to sit me down in the midst of that
0:53:19 > 0:53:22"and that's going to be sort of an admission of guilt of sorts."
0:53:22 > 0:53:24I said it's just silly.
0:53:24 > 0:53:26Jim was there for quite a long time
0:53:26 > 0:53:30and I think that it's a very stressful position.
0:53:30 > 0:53:34As you know, the Kosmos history over the seven years or whatever
0:53:34 > 0:53:37has not always been smooth sailing.
0:53:37 > 0:53:41The role of the board is to ensure the business is well managed,
0:53:41 > 0:53:45that the right disciplines are in place and the right people
0:53:45 > 0:53:49are in place and there is succession planning for management for example.
0:53:49 > 0:53:52So that those people who put money at risk
0:53:52 > 0:53:55have a chance to actually get a return.
0:53:55 > 0:53:58A tangible return in terms of cash.
0:53:58 > 0:54:01It's about protecting their personal reputations
0:54:01 > 0:54:05because they live in a world where people chew on each other's legs
0:54:05 > 0:54:08all the time and they have to protect themselves
0:54:08 > 0:54:11because if they ever, ever miss a step,
0:54:11 > 0:54:14if they are ever perceived to be wrong,
0:54:14 > 0:54:20then they're for ever lost in their quest of what they are doing because
0:54:20 > 0:54:24they don't have many opportunities to make mistakes in their world.
0:58:32 > 0:58:34But merely oil is discovered,
0:58:34 > 0:58:38merely oil is found in a part of our place...
1:02:42 > 1:02:45And without a certain discipline,
1:02:45 > 1:02:47without a certain vision,
1:02:47 > 1:02:50without a certain solidarity...
1:03:23 > 1:03:28Oil revenues will start around the fourth quarter of this year.
1:03:28 > 1:03:33We are laying the foundation for a prosperous industrial nation.
1:04:48 > 1:04:51The agreement that was entered into with Kosmos
1:04:51 > 1:04:55perhaps had terms
1:04:55 > 1:04:58that no other agreement that has been signed recently had.
1:04:58 > 1:05:03And there may have been reasons for that but
1:05:03 > 1:05:06what GNPC, I think, has tried to do, therefore,
1:05:06 > 1:05:10is, you know, also to see how, through negotiating,
1:05:10 > 1:05:14to take the increased stake, the benefits of that agreement
1:05:14 > 1:05:17can accrue more to the national oil company.
1:05:40 > 1:05:44Our biggest egregious mistake was to shut down the auction
1:05:44 > 1:05:49and to not take bids from other companies. I begged them.
1:05:49 > 1:05:51I said, "Ask for forgiveness after it's done.
1:05:51 > 1:05:55"Get the bids in hand and then you'll have the high ground.
1:05:55 > 1:05:58"At that point in time, you can deal with these people."
1:05:58 > 1:06:01I said, "Please, you've got to take the bids."
1:06:01 > 1:06:05That's also the height of the whole FCPA thing,
1:06:05 > 1:06:08that was really swirling around at that point in time.
1:06:08 > 1:06:11So Jeffrey's on his heels because of FCPA.
1:06:14 > 1:06:18You can come to the conclusion that FCPA being tossed around
1:06:18 > 1:06:22was a tactic to try and reduce market value,
1:06:22 > 1:06:26to get Kosmos to sell at a discount price,
1:06:26 > 1:06:31with the potential for the Ghanaians, or GNPC specifically,
1:06:31 > 1:06:35to then resell that interest at a mark-up, take a spread.
1:06:37 > 1:06:41The whole thing was they wanted to drive the price down
1:06:41 > 1:06:44and then turn around and sell it high.
1:06:44 > 1:06:46You know, buy it for three billion and sell it for 4.5
1:06:46 > 1:06:51and keep a third of that asset for themselves, scot-free,
1:06:51 > 1:06:54I mean, they're just as crooked as they could be.
1:06:57 > 1:07:01OK, Chris, we going to be paying out on the pipe.
1:07:01 > 1:07:02Go about 5%.
1:07:13 > 1:07:16Well, this provides GNPC with an opportunity to make a potential profit.
1:07:44 > 1:07:45OK.
1:07:45 > 1:07:48Because of the size of the prize that we'd unlocked,
1:07:48 > 1:07:51everybody was looking for an opportunity.
1:07:51 > 1:07:55But Kosmos was seeded on 300 million of other people's money.
1:07:55 > 1:07:59Nobody invests in that business, given that it's high risk
1:07:59 > 1:08:04and high cost, if, in the event of success, the returns aren't high.
1:08:04 > 1:08:07If we'd had to sell the asset to GNPC
1:08:07 > 1:08:11we don't think we would have got the full value that we'd created.
1:08:11 > 1:08:14So we came up with another plan.
1:08:23 > 1:08:26At what point was the decision made
1:08:26 > 1:08:29to negotiate with Exxon Mobil privately,
1:08:29 > 1:08:31sort of behind the back of the government?
1:08:34 > 1:08:36I went to Brian.
1:08:36 > 1:08:40I said, "Exxon has got the balls to do this and, you know,
1:08:40 > 1:08:42"just go tell them that they've got a free shot here."
1:08:42 > 1:08:45So Brian did that.
1:09:24 > 1:09:27Even though I have brought Kosmos into the country,
1:09:27 > 1:09:29they just kicked me out.
1:09:29 > 1:09:32To me, at that time, what I told them later on was,
1:09:32 > 1:09:35look, I felt, excuse me, excuse my French,
1:09:35 > 1:09:39but that's how I felt, that the nigger has been thrown under the bus.
1:09:39 > 1:09:41That's how I felt.
1:09:41 > 1:09:46Brian vehemently didn't like my characterisation of how
1:09:46 > 1:09:50I was discharged but, hey, I'm sorry, that's how I felt.
1:09:50 > 1:09:55Now after the fact they found out I didn't do what they said I did,
1:09:55 > 1:09:58how do you put the genie back in the bottle?
1:10:00 > 1:10:01Good afternoon.
1:10:09 > 1:10:12It's almost a year ago that I left this place.
1:10:12 > 1:10:16I'm going to set the record straight. Make you know what happened.
1:10:16 > 1:10:19Because you were all here and I don't want you to have
1:10:19 > 1:10:22bits and pieces of it, I want you to have the whole story,
1:10:22 > 1:10:25so that in future just for posterity's sake,
1:10:25 > 1:10:28when somebody asks you, you can say "Yes, I was there,
1:10:28 > 1:10:31"I listened to the man and this is what he said."
1:10:32 > 1:10:35Two days ago I received a letter
1:10:35 > 1:10:38from the United States Justice Department and this is their report.
1:10:38 > 1:10:43"On behalf of your clients, we do not intend to take any
1:10:43 > 1:10:48"enforcement action and have closed our enquiry into this matter."
1:10:49 > 1:10:52Despite all the backbiting,
1:10:52 > 1:10:54this is what United States government has said.
1:10:54 > 1:10:58And I felt it is important that I share the letter with you.
1:10:58 > 1:11:01The government of Ghana came here, ran through the office,
1:11:01 > 1:11:05ran through everything, my reputation is shot for ever.
1:11:06 > 1:11:09Brian, Musselman, they are here because of what we have.
1:11:09 > 1:11:13I was born here so my interest is right here.
1:11:13 > 1:11:16So for your own people to put you through this,
1:11:16 > 1:11:21just because you helped to find this asset for your country is pathetic.
1:11:30 > 1:11:36- What is the next step to this? - Well, I don't know.
1:12:00 > 1:12:05'A new guns for cash programme aims to end the militancy in Nigeria
1:12:05 > 1:12:07'and to bring more oil back into production.
1:12:07 > 1:12:12'The Nigerian government will offer 400 a month job training
1:12:12 > 1:12:14'and an unconditional pardon
1:12:14 > 1:12:17'to every militant who lays down his arms.'
1:12:22 > 1:12:25THEY SING
1:12:29 > 1:12:32HE SPEAKS IN HIS OWN LANGUAGE
1:13:49 > 1:13:50'So how do you see your future?'
1:13:50 > 1:13:52'I don't know...'
1:14:08 > 1:14:10Do you think the amnesty will work?
1:15:06 > 1:15:09Tell me what ultimately happened with the Exxon Mobil deal.
1:16:22 > 1:16:26- Should be pretty quick, Bill. - What's that?- Should be pretty quick.
1:16:26 > 1:16:29They're going to have to look at it and make sure and initial it.
1:16:29 > 1:16:30Should be.
1:16:33 > 1:16:34Right.
1:16:34 > 1:16:38Hello. Yeah, we just need to get all of this sorted out.
1:16:38 > 1:16:40We're waiting for the ministry.
1:16:40 > 1:16:42If they don't deliver it today,
1:16:42 > 1:16:45- who says when they are going to deliver?- Yes, well...
1:16:45 > 1:16:47Why is getting this agreement so important?
1:16:47 > 1:16:52We need a massive amount of cash put to the project, that's the problem.
1:16:52 > 1:16:54And it's going to allow Kosmos to go forward
1:16:54 > 1:16:59in terms of raising money and then allow us to have a more cooperative,
1:16:59 > 1:17:02mutually beneficial relationship with the government,
1:17:02 > 1:17:06as we used to, two years ago. So it's pretty important.
1:17:06 > 1:17:08Why the sudden change of heart from the government here?
1:17:08 > 1:17:11I think they realised that the status quo
1:17:11 > 1:17:16of being in conflict just was not doing anybody any good,
1:17:16 > 1:17:20for one of the leading investors in the country to be treated this way
1:17:20 > 1:17:22was not helpful for the government of Ghana.
1:17:22 > 1:17:26There was rumblings about, this is having a negative affect on
1:17:26 > 1:17:30foreign direct investment, so can we please resolve the Kosmos matter
1:17:30 > 1:17:32because it wasn't really getting very good press.
1:17:32 > 1:17:35OK.
1:17:35 > 1:17:37So you guys can't go home until this is signed?
1:17:37 > 1:17:39Probably can't go home until this is signed.
1:17:40 > 1:17:42Right...
1:17:47 > 1:17:493:30.
1:17:54 > 1:17:57This is the first draft of the speech I'm giving
1:17:57 > 1:17:59at the first oil celebration.
1:17:59 > 1:18:03"The road has been demanding of personal resilience
1:18:03 > 1:18:07"and I'm proud to be a part of this journey."
1:18:07 > 1:18:10Right. "EO is proud..."
1:18:23 > 1:18:25Yes, I gave this to them on a silver platter.
1:18:28 > 1:18:30I can't wait to deliver the speech!
1:18:31 > 1:18:34Yeah, I hope so!
1:18:51 > 1:18:53They're different models to it.
1:18:53 > 1:18:57I mean, obviously if they follow the Norwegian model where
1:18:57 > 1:19:01a certain proportion of the revenue from oil is allocated
1:19:01 > 1:19:03to providing social facilities,
1:19:03 > 1:19:07then of course you are going to see a major impact.
1:19:14 > 1:19:17It all depends on the administration.
1:19:17 > 1:19:20They should use it wisely so that in future
1:19:20 > 1:19:22our children yet to come will know that,
1:19:22 > 1:19:24yes, our leaders did a good job for this nation.
1:19:34 > 1:19:38TANNOY: After a long wait the day has come.
1:19:38 > 1:19:43We must ensure that the oil is a blessing and not a curse.
1:19:48 > 1:19:51Over the last few months we have worked to reset
1:19:51 > 1:19:55the relationship with Kosmos and I think we have achieved that now.
1:20:00 > 1:20:02It was in the best interests of everybody.
1:20:04 > 1:20:07The oil business is a team game.
1:20:10 > 1:20:12So, moving forward, what are your goals?
1:20:12 > 1:20:17We will make sure that, as a team, as a family, we will work together
1:20:17 > 1:20:21to develop something that can change the destiny of this country.
1:20:22 > 1:20:27Our goals are to maximise the value of the assets that we create
1:20:27 > 1:20:33and the way we do that is explore as much as we can,
1:20:33 > 1:20:37find as many oilfields as we possibly can
1:20:37 > 1:20:40and then bring those oilfields to development quickly.
1:20:58 > 1:21:02When you have a company such as ours, that's taken the risk,
1:21:02 > 1:21:07people need to applaud and reward the risk with the proper returns.
1:21:07 > 1:21:11But our emerging countries are going to run the capital off,
1:21:11 > 1:21:14are they going to kill the golden goose one more time
1:21:14 > 1:21:16because they get greedy?
1:21:17 > 1:21:20So, do you think it's just human nature to fight like this
1:21:20 > 1:21:24over who's going to get what when a valuable resource is found?
1:21:39 > 1:21:42So it is not the case that the automatic response is
1:21:42 > 1:21:43for people to sit down and say,
1:21:43 > 1:21:46"OK, how do we divide up the loaf most effectively?"
1:22:11 > 1:22:13It's very nice.
1:22:18 > 1:22:22We are starting with the EO Group, the boss of the EO Group, please.
1:22:25 > 1:22:29We have made the first major oil discovery in the country
1:22:29 > 1:22:32and I think we deserve a lot of credit for that.
1:22:38 > 1:22:40I persevered and came here
1:22:40 > 1:22:43because I believed that Ghana had oil.
1:22:43 > 1:22:46And I am glad that we have finally been able to pull this off
1:22:46 > 1:22:49for the country. God bless you, Ghana.
1:22:52 > 1:22:56Thank you very much, Mr Owusu of the EO Group.
1:23:39 > 1:23:42The opening is the most watched financial event anywhere
1:23:42 > 1:23:45- and we tell you, about 100 million people will see this...- Vast.
1:23:45 > 1:23:48- ..particular opening.- Don't miss the button!- He's pressing it!
1:23:48 > 1:23:50It's amazing visibility
1:23:50 > 1:23:52so we are delighted to have you here for this.
1:23:52 > 1:23:54Ready to head up? Let's go and do it.
1:24:04 > 1:24:07This kind of sucks.
1:24:09 > 1:24:12Thank you for coming.
1:24:15 > 1:24:21You have six seconds. Five, four, three, two, one.
1:24:21 > 1:24:24BELL RINGS
1:24:29 > 1:24:35This is how the system works and if you succeed
1:24:35 > 1:24:39then you actually can demonstrate that you've created something.
1:24:39 > 1:24:43You may have been there at the birth of a new enterprise
1:24:43 > 1:24:46and even when the firm no longer has an investment in that enterprise,
1:24:46 > 1:24:49the enterprise may still exist.
1:24:49 > 1:24:52And you always have the satisfaction of being a godfather to that success.
1:24:53 > 1:24:58I mean godfather in a positive sense, less than the Don Corleone sense.
1:24:58 > 1:25:01And that's self-serving as well because if you generate
1:25:01 > 1:25:07a good reputation then it will lead to the better deal flow
1:25:07 > 1:25:09and the most money coming in
1:25:09 > 1:25:11so reputation is everything.
1:25:13 > 1:25:15- Congratulations. - Thanks very much.
1:25:15 > 1:25:18- So what time is your next interview? - Right here!- Right now!
1:25:19 > 1:25:23When one stands up there you just see the cameras pointing at you.
1:25:24 > 1:25:28But what hits you is the realisation of what you've achieved.
1:25:30 > 1:25:34We actually achieved what we set out to do.
1:25:34 > 1:25:37We were able to realise the full value of the assets
1:25:37 > 1:25:40that we'd created.
1:25:46 > 1:25:47Yes, long-term absolutely,
1:25:47 > 1:25:49we are bullish on oil prices.
1:25:49 > 1:25:53'For me the new challenge in Kosmos is taking it to the next level.'
1:25:54 > 1:25:57There's a lot of oil still to be found in West Africa.
1:25:59 > 1:26:02Why Africa? Well, let's ask the CEO, he's right here. Brian Maxted.
1:26:02 > 1:26:04Do you negotiate with the countries themselves
1:26:04 > 1:26:06to get the rights to the exploration?
1:26:06 > 1:26:08We do, we try and get there first,
1:26:08 > 1:26:10we try to go to those places that are overlooked or misunderstood
1:26:10 > 1:26:13or just simply walked past by the super-majors.
1:27:05 > 1:27:09Subtitles by Red Bee Media Ltd