Kosmos Energy, the US-based shareholder in the floating liquefied natural gas joint venture offshore the West African nations of Mauritania and Senegal, has adjusted its shareholdings for the pre-emption rights of Tullow Oil plc of the UK after spending $550 million to acquire shareholdings in oil and gas fields offshore Ghana from Occidental Petroleum of the US.
Kosmos, a specialist in Atlantic Margin exploration and production and based in Dallas, Texas, had agreed in October 2021 to acquire an additional 18 percent interest in the Jubilee field and an additional 11 percent stake in the Tweneboa, Enyenra and Ntomme (TEN) oil and gas fields offshore of Ghana.
Ghana National Petroleum Corp. (GNPC) was also acquiring stakes in the same fields from Occidental for $200M and will be the main partner of Kosmos.
The new Kosmos focus on Ghana comes as FLNG projects being developed with UK major BP offshore Mauritania and Senegal continue to progress, centred on the Greater Tortue-Ahmeyim gas fields.
The first Mauritania-Senegal FLNG production facility is scheduled to have first gas in early 2023.
Kosmos explained that in Ghana after execution of definitive transaction documentation and receipt of required government approvals, Kosmos and Tullow have now concluded their pre-emption transaction.
For another shareholder PetroSA of South Africa, the process is ongoing and remained subject to execution of definitive agreements and required government approvals.
Reductions
Following completion of the pre-emption by both Tullow and PetroSA, the ultimate interest of Kosmos will be reduced in Jubilee by 3.8 percent to 38.3 percent.
Under the changes Kosmos would retain 80 percent of the original acquired interest.
The ultimate Kosmos interest in the Tweneboa, Enyenra and Ntomme oil and gas fields offshore of Ghana will be reduced by 8.3 percent to 19.8 percent with Kosmos retaining 25 percent of the original acquired interest.
The consideration paid to Kosmos from Tullow after taking into account closing adjustments was around $118 million in the first quarter.
An additional $10M is expected to be payable on completion of the PetroSA pre-emption process and Kosmos plans to accelerate debt reduction with the proceeds.
The net 2022 production impact of the pre-emption exercise for Kosmos is a reduction of about 4,000 barrels of oil per day and is expected to result in one less Ghana cargo lifting this year and a reduction in 2022 capital expenditure of around $30M.
LNG progress
Kosmos said in its March 2022 earnings that the Mauritania-Senegal FLNG venture was 70 percent completed.
Both BP and Kosmos said the Greater Tortue-Ahmeyim LNG project had made steady progress in 2021.
All eight process modules have now been lifted onto the deck of the Floating Production Storage Offloading unit and mechanical completion of the process sub-systems was underway,
Construction was also completed of the 21st and final caisson of the breakwater and the subsea pipe-laying vessel completed its nautical trials in preparation for the offshore installation campaign in the second quarter of 2022.
Kosmos said that the FLNG hull had all four mixed-refrigerant compressors lifted onboard and pipe-rack installation operations had commenced.
