West African FLNG player Kosmos makes discovery in home waters of US Gulf of Mexico

Tuesday, 04 June 2019
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Kosmos Energy, the Dallas-based company that made the natural gas discoveries to establish floating LNG export projects offshore Mauritania and Senegal, has announced a find in its home waters of the US Gulf of Mexico as it continues the sale process for parts of its African FLNG stakes.

The US Gulf oil find was in Gladden Deep, a sub-sea tie back which is expected to be brought online through the existing Gladden pipeline to the Medusa spar in the fourth quarter of 2019.

Kosmos said Gladden Deep was the first well of a four-well, infrastructure-led exploration program in the US Gulf for 2019.

“Kosmos will drill the Moneypenny prospect in the third quarter, followed by the Oldfield and Resolution prospects in the fourth quarter,” said Kosmos.

“These three prospects are collectively targeting around 100 million barrels of oil equivalent net to Kosmos,” it added.

Kosmos has an exploration program balanced between proven basin infrastructure-led exploration in Equatorial Guinea and the US Gulf while pushing forward with its Atlantic Margin activities in the emerging basins of Mauritania and Senegal in West Africa and in Suriname on the northeast coast of South America.

“Although Gladden Deep is the smallest prospect in this year’s drilling campaign, it is a prime example of our strategy in action, targeting high margin, high return barrels that can be quickly brought online through existing facilities,” said Chairman and Chief Executive Andy Inglis.

“This discovery continues the strong momentum we have seen in our Gulf of Mexico business unit, following the recent lease sale results and increased production from the Tornado-3 well coming online,” added Inglis.

The company is also exploring in frontier basins from Namibia in southwest Africa to the Ivory Coast in West Africa and offshore the island nation of Sao Tome and Principe.

Kosmos revealed its intention in May 2019 to sell down its position in Mauritania and Senegal to around 10 percent and the sale process had “generated significant industry interest”, with formal bids expected to be tabled in the third quarter of 2019.

Kosmos made the Mauritania and Senegal discoveries and in 2016 and agreed to sell BP of the UK around 60 percent of the licences, while BP also took over operatorship.

The US company retained around 30 percent of the Senegal fields and licence and about 28 percent of the project’s Mauritania holdings.

As of early May, all major contracts had been awarded for phase one of the West African FLNG project and construction had started on a floating production storage and offloading unit.

The first gas from the Kosmos-BP FLNG Train 1 is scheduled for 2021 and the start of the second FLNG Train is set for 2023.

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