Petroleum Africa
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Wednesday, October 16, 2013
Kosmos Energy entered into a farm out agreement with BP giving the UK major access to assets in Morocco. The two parties entered into three farm-out agreements covering three blocks in the Agadir Basin, offshore Morocco. Under the terms of the agreements, BP will acquire a non-operating interest in each of the Essaouira Offshore, the Foum Assaka Offshore, and the Tarhazoute Offshore blocks.
Under the agreement BP will fund Kosmos’ share of the cost of one exploration well in each of the three blocks, subject to a maximum cost per well. In the event a second exploration well is drilled in any block, BP shall pay a disproportionate share of the well cost subject to a maximum cost per well. BP shall also pay its proportionate share of past costs.
The completion of the transactions is subject to the customary closing conditions, including approval from the government.
Kosmos also reported that it has recently signed a petroleum agreement with Morocco’s state run ONHYM covering the Tarhazoute Offshore Block, which it previously held under a reconnaissance contract. The Tarhazoute block is contiguous with the Essaouira and Foum Assaka blocks and will allow integrated exploration over a significant portion of the Agadir Basin.
Brian F. Maxted, CEO, Kosmos Energy, commented: “The Agadir Basin farm-out along with the petroleum agreement for Tarhazoute mark significant and important forward steps for Kosmos in Morocco as we prepare to commence drilling in the first half of 2014. We are delighted that BP will be joining this venture as they add significant value to our operations, particularly given their proven success in salt basin exploration and production.”
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