LNG

The 50th anniversary Gastech Exhibition and Conference on LNG, pipeline natural gas and emerging energies entered its third day on Wednesday after serious discussions on the natural gas crisis in Europe, the future of Gazprom's ties with the West and projects to replace Russian gas from regions like the East Mediterranean and Africa.

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.

French classification society Bureau Veritas has granted operational mode for the Torman LNG floating regasification unit (FRU) at Tema port in Ghana, opening the way for the West African nation to become an LNG importer.

The unit is combined with a floating storage unit (FSU) for the delivery of gas to onshore consumers.

Jiangnan Shipbuilding, a subsidiary of China State Shipbuilding Corp., built the FRU and the vessel left the Chinese yard at the end of November 2020 for the voyage to African waters for deployment.

A venture called Access LNG comprising Helios Investment Partners, a leading Africa focused private investment firm, and Gasfin Development, an LNG infrastructure company, is developing the facility.

Gasfin has led the design of the project and the fabrication of the floating infrastructure with capacity to deliver 2 million tonnes per annum of LNG.

The Tema project is designed around the FRU working in conjunction with an upgraded 127,500 cubic metres capacity LNG carrier, which will act as floating storage, to deliver 250 million standard cubic feet per day of gas.

“This exciting development of Gasfin’s facility, involving the Torman LNG FRU and a Moss-type LNG floating storage unit (FSU), both classed by Bureau Veritas, paves the way for the first deliveries of LNG to a terminal in sub-Saharan Africa,” declared Bureau Veritas.

“The project will contribute to meeting Ghana’s growing cleaner energy demand,” said the French class society.

“The volume that Ghana National Petroleum Corp. (GNPC) will be taking is equivalent to circa 1,300 megawatts of combined cycle power plant capacity,” it added.

The 95-metre long, newly built FRU has been fitted with two IMO type-C tanks and has a storage capacity of 28,000 cubic metres.

The LNG FRU is designed for an operational life of approximately 20 years.

Helios established Tema LNG Terminal Co. (TLTC) to develop, construct and operate sub-Saharan Africa’s first LNG import terminal.

The companies involved now say that the Tema LNG terminal venture has achieved mechanical completion and the first LNG delivery should not be far off.

The classification and certification scope, successfully conducted by Bureau Veritas, included the design, review, approval, material certification, and construction surveys of the LNG FRU at the Jiangnan shipyard, as well as in Tema port.

During the unit’s service years, Bureau Veritas will be supporting Gasfin’s management, reassuring stakeholders of the structural soundness of the unit and its safety, through regular conformity checks under classification rules and international standards.

“This is a great achievement for all the teams involved,” said Kerem Kiper, Vice President for the Middle East, Africa, and India at Bureau Veritas.

“This project proves that alternative solutions to produce and store electricity are available,” he added.

“It opens up new opportunities in Africa for LNG floating units. I am proud of the BV team as we continue to demonstrate our expertise across the LNG value chain,” stated Kiper.

Kosmos Energy, the US partner of BP in the Mauritania-Senegal floating LNG projects, reported a net profit in the fourth quarter compared with a loss in the year-ago period as it advanced with its FLNG plans and expanded its Africa-focused activities.

Kosmos Energy, the US exploration and production company based in Dallas, said it was making more progress on developing multiple African liquefied natural gas production hubs offshore Senegal and Mauritania with UK partner BP and an investment decision was due soon.

July 18 (LNGJ) - Kosmos Energy, the Dallas-based partner of BP of the UK in the development of floating LNG projects offshore Senegal and Mauritania in West Africa, has been successful in an arbitration case brought by its subsidiary in another West African country, Ghana, against Tullow of the UK. The dispute was over responsibility for expenditure stemming from termination of the West Leo drilling rig contract in Ghana. The tribunal’s final award in the arbitration was delivered to the parties by the International Chamber of Commerce. As a consequence of the arbitration award, Kosmos will not be required to fund its portion of Tullow’s liability to Seadrill, estimated by Tullow to be around $50.8 million. “Kosmos will also be reimbursed by Tullow for approximately $14 million plus interest, related to amounts previously paid under protest as well as certain costs and fees of pursuing the arbitration,” said the US company.

Italian energy company Eni has started natural gas production from the Sankofa gas field offshore Ghana as the West Africa nation still awaits firm progress on one of the various LNG import projects it has been involved in to meet its growing energy needs.