Industry observers of the country's nascent oil industry are questioning state-run Ghana National Petroleum Corporation's (GNPC), obsession with the China National Offshore Oil Corporation (CNOOC) to partner it in the Jubilee operations. The questions doing the rounds are whether the Chinese have the better technology, track record and, importantly, the desire to demand from Ghanaian authorities the good governance and ethical practices that will ensure efficient and peaceful development of the country's hydrocarbons industry. GNPC is currently challenging Kosmos Energy's deal to sell its 23.5 percent stakes in Jubilee to US supermajor ExxonMobil, claiming that Kosmos violated Ghanaian laws when it shared confidential exploration data with over 20 companies for its own commercial purposes without giving GNPC any prior notification. Earlier, it was revealed that CNOOC is in advanced talks with GNPC to make a rival bid for the stake in the Jubilee Field development. Well-placed government sources, earlier in June, disclosed to B&FT that Kosmos was being compelled by government to offload to CNOOC. Government confirmed only last month that it was seeking to cooperate with a Chinese company in the country's upstream sector, targetting a quick transfer of technology, and cash injections from the Chinese to enable fast development of local capacity in oil exploration and production. Government's intentions have set tongues wagging in certain places, more especially as GNPC - an interested party in Kosmos's asset - is also the agency mandated to assess the Exxon-Kosmos deal for onward transmission to the Ministry of Energy. Analysts point out that China's charm is fading on the African continent. It is reported that early last month Angola blocked a US$1.3-billion US bid by two Chinese state-owned companies, CNOOC and China National Petroleum Corp. (Sinopec) for a 20 percent share in an offshore oil parcel called Block 32. Angola's state-owned oil company Sonangol decided to exercise its right of first refusal, and stepped in to buy the 20-per cent share itself from Houston-based Marathon Oil at the price offered by the two Chinese companies. This was a slap in the face for Beijing, which buys 18 per cent of its oil from Angola China's largest single foreign supplier. At the same time, China has lavished low-interest loans on the Luanda government of Jose Eduardo dos Santos and committed to build vast road and rail infrastructure projects in Angola. The result is that Angola is China's largest trade partner in Africa, with bilateral commerce worth US$25.3 billion last year. Coming under intense pressure as to how Chinese technology could rival that of ExxonMobil's, for example, officials of the country's upstream regulator have been hinting that GNPC has enough money of its own to acquire Kosmos's stakes. ExxonMobil is the largest publicly traded international oil and gas company, and is reputed to use technology and innovation to find better, safer and cleaner ways to provide energy in support of development and improved living standards around the world. The company is said to have achieved zero spills from ExxonMobil-operated and long-term chartered marine vessels in 2008, and reduced the number of spills greater than one barrel by 60 percent since 2001. Analysts suggest government could be aiming at channeling infrastructure loans it hopes to obtain from the Chinese government into acquiring greater stakes in Jubilee, hence it's determination to get the Chinese into the Jubilee operations to enhance its chances of obtaining those loans. In August, CNOOC confirmed it was joining the race for Jubilee - although it would not comment on the said partnership with GNPC. Chinese oil companies have announced plans to spend at least US$16 billion to buy oil and gas in Africa since 2006, Bloomberg reported. The move is in line with the ballooning energy demand of an emerging economic giant. China's oil consumption doubled over the last decade to 8 million barrels per day last year, according to Bp1s Statistical Review. Some analysts have opined that despite strongly favouring a deal with the Chinese, government will nonetheless not veto the US$4 billion Exxon-Kosmos deal, but will likely seek some revision to accommodate the nascent national oil company in addition to assurances from ExxonMobil of not delaying production of oil from Jubilee. Ghana is set to become West Africa's newest oil exporter when production begins at the Jubilee discovery. The field may hold 1.8 billion barrels of oil and will produce 120,000 barrels of crude per day, according to London-based Tullow Oil, the project operator. Source: B&FT