Petroleum Africa
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Tuesday, February 23, 2021
In its Q4 Highlights and 2020 Results, Dallas-based Kosmos Energy provided update on its operations and future plans in Equatorial Guinea, Ghana, and Mauritania/Senegal where it is partnered on the mega Phase 1 of the Greater Tortue Ahmeyim project.
Production in Equatorial Guinea averaged approximately 31,200 bopd gross and 10,500 bopd net in the fourth quarter of 2020. As forecasted, Kosmos lifted 1.5 cargos from Equatorial Guinea during the quarter for a total of 4.5 cargos net in 2020.
In 2021, partners have commenced the second phase of the planned electrical submersible pump program as well an infrastructure enhancement campaign to increase operational uptime across the assets. Our first infill drilling campaign is expected to start in the second quarter with three wells planned.
In Mauritania and Senegal, Phase 1 of the Greater Tortue Ahmeyim project made good progress in the quarter and was around 50% complete by year end. The project remains on track for first gas in the first half of 2023.
To fund its current interest, Kosmos has established a financing path to first gas including the sale of the Company’s interest in the FPSO, the re-financing of the National Oil Company loans and a direct investment in Kosmos’ Mauritania and Senegal position. Good progress has been made with the FPSO sale with Kosmos and BP signing a Memorandum of Understanding this month outlining the key terms of the transaction. Closing is now targeted within the second quarter of 2021. The sale of the FPSO is expected to reduce Kosmos’ cash requirements to first gas by approximately $320 million as previously communicated.
The strong progress with Phase 1 is enabling the advancement of Phase 2 towards final investment decision, which is targeted for the end of 2022. Kosmos continues to collaborate with operator BP and the National Oil Companies of Mauritania and Senegal on a more capital efficient project, which leverages the infrastructure built in Phase 1 to reduce costs and enhance the returns of future phases. With lower capital requirements from an optimized scheme, Kosmos expects to fund its interest in Phase 2 largely from Phase 1 cash flows.
In Ghana, production averaged approximately 24,300 barrels of oil per day (bopd) net in the fourth quarter of 2020. As forecasted, Kosmos lifted three cargos from Ghana during the fourth quarter for a total of 10 cargos in 2020.
Gross production rates at Jubilee averaged approximately 75,500 bopd during the quarter with FPSO uptime of around 95%. TEN production averaged approximately 43,200 bopd gross for the fourth quarter with FPSO uptime of 98%.
In early 2021, the Catenary Anchor Leg Mooring (CALM) buoy was commissioned with the first offloading taking place in February. The CALM buoy will replace the need for shuttle tankers and is expected to reduce operating expenses going forward. Infill drilling is also expected to resume in the second quarter with drilling planned for three wells on Jubilee and one on TEN in 2021. The partnership entered into a rig contract of up to four years for the Maersk Venturer, which is expected to arrive on location in the second quarter.
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