Continental Focus, International Reach

Kosmos’ African Q1 Action

Wednesday, May 8, 2019

In its Q1 report Kosmos Energy revealed that it saw its production average 59,500 boepd. During the quarter its net volumes out of Ghana averaged approximately 28,620 bpd from the Jubilee and TEN fields.

According to the company, gas handling reliability at the Jubilee field was enhanced during the quarter with a spare high-pressure gas compressor now available. Kosmos continues to work with the operator to increase the gas handling capacity, which would thereby allow oil production rates to increase.

At TEN, in March the EN-10 well was completed and brought online, increasing production from the field. An additional production well is expected to be brought onstream around the middle of the year, enabling the field to increase production rates to the FPSO nameplate oil capacity of 80,000 bpd gross.

In Equatorial Guinea, Kosmos saw its production average approximately 12,605 bpd net. Kosmos lifted the forecasted one and a half cargoes from Equatorial Guinea during the quarter. The company said that its electric submersible pump (ESP) program is on track, adding around 2,500 bpd gross to offset decline. Kosmos expects to complete two more ESP conversions around the middle of the year.

The company also saw all major contracts awarded for its Tortue Phase 1 project, offshore Mauritania and Senegal, as of early May. Construction activity has also commenced with work on the FPSO.

In April 2019, KBR was awarded the Pre-FEED services contract for Phases 2 and 3 of the Greater Tortue Ahmeyim project. These next phases are expected to expand capacity of this hub to almost 10 MMTPA of LNG for export.

In the wider Mauritania/Senegal basin, Kosmos has commenced a formal process to sell down its interest to around 10% with bids expected by the end of summer.

During Q1 Kosmos also added to its African acreage, entering into a petroleum contract in March covering the Marine XXI block with the Republic of the Congo, subject to customary governmental approvals. Upon approval, Kosmos will hold an 85% participating interest and will be the operator. Also in March, the company acquired Ophir’s remaining interest in Block EG-24 offshore Equatorial Guinea, which resulted in Kosmos owning an 80% participating interest in the block.