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Kosmos Updates West Africa Ops

Kosmos Energy has announced its financial and operating results for Q4 2019, highlighting its operations in Africa – Ghana, Equatorial Guinea, Mauritania and Senegal specifically.

During the fourth quarter of 2019, net production from Ghana averaged approximately 27,800 barrels of oil per day (bopd). As forecast, Kosmos lifted four cargos from Ghana during the fourth quarter. The Jubilee gas enhancement work program that was rescheduled from the fourth quarter of 2019 into the first quarter of 2020, was completed in early February with production rates of around 90,000 bopd now being achieved.

Production in Equatorial Guinea averaged approximately 11,400 bopd net in the fourth quarter of 2019 and Kosmos lifted one and a half cargos from Equatorial Guinea during the quarter.

In late October, the S-5 well encountered approximately 39 meters of net oil pay in good-quality Santonian reservoir. The well is located within tieback range of the Ceiba FPSO and work is currently ongoing to establish the scale of the discovered resource and evaluate the optimal development solution. The well was drilled in approximately 800 meters of water to a total measured depth of around 4,400 meters.

The Greater Tortue Ahmeyim project located offshore Mauritania and Senegal remains on track with Phase 1 approximately 25 percent complete. Pre-FEED work is ongoing for Phases 2 and 3 and these phases are expected to expand capacity to almost 10 MTPA of LNG export capacity.

On February 11, 2020, Kosmos and its partners signed a Sale and Purchase Agreement (SPA) with BP Gas Marketing Limited for 2.45 million tonnes per annum of liquified natural gas from Phase 1 of the project for an initial term of up to 20 years. Signing the SPA has allowed Kosmos to book approximately 100 mmboe of proven reserves associated with the project.

In October, Kosmos announced that the Orca-1 exploration well made a major gas discovery offshore Mauritania in the BirAllah area. Orca was the largest deepwater hydrocarbon discovery in 2019 and the results continue the 100 percent success rate from nine wells targeting the inboard gas trend in Mauritania/Senegal.

The company also updated its 2020 Capital Expenditure Budget. Kosmos expects to spend approximately $325 to $375 million in 2020, including Gulf of Mexico activities and excluding Mauritania and Senegal, with spending focused on maintaining existing production and growth through infrastructure led exploration. In Mauritania and Senegal, total 2020 capital expenditure for Kosmos’ approximately 30 percent working interest is expected to be around $250 million and is expected to be funded from proceeds from the previously announced and ongoing farm-down process.

Source: PetroleumAfrica

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