LNG

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.

Subsea 7 SA, the European contractor listed on the Norwegian stock exchange, said it was proud to support African oil and gas development after being awarded a lean-gas project contract in the LNG-producing nation of Angola.

Subsea 7 said its “substantial” contract was awarded by Cabinda Gulf Oil Company (CABGOC), a subsidiary of US major Chevron Corp. operator of the LNG plant.

The contract is for the Sanha Lean Gas Connection (SLGC) project comprising the construction and installation of the Lean Gas Platform system in Block-0 offshore the southwest African state at a water depth of around 70 metres.

Project management and engineering would be performed from Subsea 7’s offices in Paris and Lisbon.

Subsea 7 contracts listed as “substantial” are usually worth between $150 million to $300M.

Fabrication will take place at Sonamet’s yard in Lobito, Angola, from 2021 to 2022, while offshore operations will occur from 2022 and 2023.

“We are delighted to have been awarded this contract by CABGOC, following a public tender,” said Gilles Lafaye, the Subsea 7 Senior Vice President for Africa, the Middle East and Caspian Region.

“This is the result of a long-term collaboration with the client and a track record of delivering successful projects,” added Lafaye.

“The project reinforces Subsea 7’s presence in Angola and our commitment to support Africa’s energy industry,” he stated.

Angola has taken up the rotating presidency of the Organisation of Petroleum Exporting Countries and will chair OPEC meetings during 2021 at a time of change and challenges in the industry.

Angola is the second-largest oil producer in Sub-Saharan Africa and uses associated gas to produce LNG as a clean energy source at its liquefaction plant.

The other shareholders in addition to Chevron and Angolan energy company Sonangol are BP of the UK, Eni of Italy and France’s Total.

The Angola LNG plant is located 350 kilometres north of the capital Luanda in Soyo, at the mouth of the Congo River and is one of the world’s most modern LNG processing facilities.

A pipeline network of over 500km delivers gas from offshore oil fields to the Soyo plant designed to process 1.1 billion cubic feet of natural gas per day and produce 5.2 million tonnes per annum of LNG.