Continental Focus, International Reach

Kosmos to Pick up Senegal Stake

Tuesday, October 7, 2014

Kosmos Energy is expanding its Africa footprint with the addition of a stake in Senegal. The company is on the verge of signing a farm-in agreement with Petrosen and Timis Corp. for a 60% stake in the Cayar and St. Louis offshore blocks.

According to a document seen by Reuters, under the farm-in agreement Kosmos has committed to drill two exploration wells up to a total value of $240 million. There is also a clause for the drilling of a third exploration well, or alternatively an appraisal well, valued at $120 million. Under the terms of the Kosmos will operate the blocks with the 60% stake and Timis Corp. and Petrosen will hold 30% and 10% respectively.

Kosmos has also committed as the new operator to undertake a 3D seismic survey of around 7,000 sq km over the two blocks. The seismic survey is expected to start immediately and to take approx. four months “We believe that the blocks show a very substantial potential and all parties look forward to working together to advance the development of the areas to their maximum potential,” Petrosen Director General Mamadou Faye said in the document.


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