Offshore staff
DALLAS – Kosmos Energy has paid Occidental Petroleum $460 million to acquire additional production interests offshore Ghana.
The deal gives Kosmos a further 18% in the Jubilee field and 11% in the TEN fields in Ghana, lifting its respective stakes in the developments to 42.1% and 28.1%.
However, the transaction remains subject to a 30-day pre-emption period. If fully exercised, this could cut Kosmos’ ultimate interest in Jubilee by 3.8% to 38.3%, and in TEN by 8.3% to 19.8%. Prior to closing the transaction, Occidental resolved certain historical tax claims related to the sold interests.
Kosmos said it had worked closely with operator Tullow Oil and the other joint venture partners this year to improve facility reliability and operational performance in Ghana.
The new wells drilled recently have delivered more production, high levels of FPSO uptime, near-record water injection and materially higher gas offtake, the company added.
Andrew G. Inglis, chairman and CEO, said the transaction “is expected to provide long-term sustainable cash flow from fields where we have a deep understanding of the value and future upside.
“We expect the additional Ghana interests to generate around $1 billion of incremental free cash flow by the end of 2026 at $65 Brent with upside given current prices. We plan to use the additional cash flow from these assets to reduce absolute debt levels and fund our growth in LNG.”
10/14/2021
