Kosmos Energy Ltd. (Kosmos), a deep-water exploration and production company, engages in the exploration, development, and production of oil and natural gas properties
The company has diversified oil and gas production from assets offshore Ghana, Equatorial Guinea, Mauritania, Senegal and the Gulf of America. Additionally, in the proven basins where it operates the company is advancing quality development opportunities, which have come from its exploration success.
Strategy
The key elements o...
Kosmos Energy Ltd. (Kosmos), a deep-water exploration and production company, engages in the exploration, development, and production of oil and natural gas properties
The company has diversified oil and gas production from assets offshore Ghana, Equatorial Guinea, Mauritania, Senegal and the Gulf of America. Additionally, in the proven basins where it operates the company is advancing quality development opportunities, which have come from its exploration success.
Strategy
The key elements of the company's strategy are to maximize the value of its producing assets; progress its discovered resources toward project sanction and into proved reserves and production; and add new lower carbon resources through acquisitions and an efficient exploration program in proven basins.
Geographic Area
The company has operations in Africa and the Gulf of America. The company’s operating revenues are generated from its operations offshore Ghana, Equatorial Guinea, and the Gulf of America.
Exploration License and Lease Areas
Ghana
The WCTP and DT Blocks are located within the Tano Basin, offshore Ghana. This basin contains a proven world-class petroleum system as evidenced by the company's discoveries. In 2021, Kosmos completed the acquisition of Anadarko WCTP Company (Anadarko WCTP), a subsidiary of Occidental Petroleum Corporation, which owned a participating interest in the WCTP Block and DT Block offshore Ghana, including an 18.0% participating interest in the Jubilee Unit Area and an 11.1% participating interest in the TEN Fields. Following closing of the acquisition, Kosmos' interest in the Jubilee Unit Area increased from 24.1% to 42.1%, and Kosmos' interest in the TEN Fields increased from 17.0% to 28.1%. In November 2021, the company received notice from Tullow Oil plc (Tullow) that they were exercising their pre-emption rights in relation to Kosmos' acquisition of Anadarko WCTP. After execution of definitive transaction documentation and receipt of governmental approvals, Kosmos concluded the pre-emption transaction with Tullow in March 2022. Following completion of the pre-emption process, Kosmos' interest in the Jubilee Unit Area decreased from 42.1% to 38.6% and Kosmos' interest in the TEN Fields decreased from 28.1% to 20.4%.
Ghana West Cape Three Points Block
Tullow is the operator of the West Cape Three Points Block. Under the WCTP petroleum contract, Kosmos is required to pay to the Government of Ghana a fixed royalty of 5% and a potential sliding-scale royalty (additional oil entitlement), which comes into effect and escalates as the nominal project rate of return increases above a certain threshold. The WCTP petroleum contract has a duration of 30 years from its effective date (July 2004).
Ghana Deepwater Tano Block
Tullow is the operator of the Deepwater Tano Block. Under the DT petroleum contract, GNPC exercised its option to acquire an additional paying interest of 5% in the commercial discovery with respect to the Jubilee Field development and the TEN Fields development. Kosmos is required to pay to the Government of Ghana a fixed royalty of 5% and a potential additional oil entitlement, which comes into effect and escalates as the nominal project rate of return increases above a certain threshold. The DT petroleum contract has a duration of 30 years from its effective date (July 2006).
The Ghanaian Petroleum Exploration and Production Law of 1984 (PNDCL 84) (the ‘1984 Ghanaian Petroleum Law’) and the WCTP and DT petroleum contracts form the basis of exploration, development and production operations on the WCTP and DT blocks. Pursuant to these petroleum contracts, most significant decisions, including PoDs and annual work programs, for operations other than exploration and appraisal, must be approved by a joint management committee, consisting of representatives of certain block partners and GNPC. Certain decisions require unanimity.
Jubilee Field
The field covers an area within both the WCTP and DT Blocks. To optimize resource recovery in the Jubilee Field, it was unitized, and the Jubilee UUOA was agreed to in 2009 which governs each party’s respective rights and duties in the Jubilee Unit and named Tullow as the Unit Operator. Although the Jubilee Field is unitized, Kosmos’ participating interests in each block outside the boundary of the Jubilee Unit are not impacted by the Jubilee UUOA. The WCTP petroleum contract has a 54.367% participating interest in the Jubilee Unit and the DT petroleum contract has a 45.633% participating interest in the Jubilee Unit. The company’s participating interest in the Jubilee Unit is based on these allocations and any event of redetermination in the future would impact Jubilee Unit participating interest.
The Jubilee Field is located approximately 60 kilometers offshore Ghana in water depths of approximately 1,000 to 1,800 meters, which led to the decision to implement an FPSO based development. The FPSO is designed to provide water and natural gas injection to support reservoir pressure, to process and store oil and to export gas through a pipeline to the mainland. The Jubilee Field continues to be developed in a phased approach. The initial phase provided subsea infrastructure capacity for additional production and injection wells to be drilled in future phases of development. The phased development of the Jubilee Field continued during 2024 with the conclusion of the three year infill drilling campaign in the second quarter of 2024. This recent multi-year development drilling campaign included a total of seventeen wells, including the successful startup of the Jubilee Southeast project. The Jubilee Southeast project also included the installation of a new subsea production manifold in 2023.The partnership is now plan conducting a new 4D seismic survey which started in early 2025. In December 2024, the partnership entered into a drilling rig contract for the next development drilling campaign in the Jubilee Field, which is expected to commence in the second quarter of 2025. The campaign is planned to include the drilling and completion of two in-fill wells in the Jubilee Field in 2025, both expected to be online in the third quarter of 2025, with additional wells planned in 2026.
In Ghana, the company produces associated gas from the Jubilee and TEN Fields. A gas pipeline from the Jubilee Field transports such natural gas onshore for processing and sale.
TEN
The TEN Fields are in the western and central portions of the DT Block, approximately 48 kilometers offshore Ghana in water depths of approximately 1,000 to 1,700 meters. The discoveries have been jointly developed with shared infrastructure and a single FPSO, with first oil produced in 2016. Similar to Jubilee, the TEN Fields have been developed in a phased manner. The TEN PoD was designed to include an expandable subsea system that could provide for multiple phases.
Gulf of America
In the Gulf of America, Kosmos maintains: a portfolio of producing assets that the company plans to continue to exploit; discovered resource opportunities, and a high-quality inventory of infrastructure-led exploration prospects across the DeSoto Canyon, Green Canyon, Keathley Canyon, Mississippi Canyon and Walker Ridge protraction areas. The company expands its inventory through the Gulf of America Federal lease sales and farm-in transactions.
Odd Job
The Odd Job Field is producing from three Middle Miocene wells through the Delta House FPS, operated by Murphy. In June 2022, the company executed, as operator of the Odd Job Field, a contract with Subsea 7 (US) LLC and OneSubsea LLC to fabricate and install a subsea pump in the Odd Job Field. The Odd Job Field subsea pump installation was successfully brought online in July 2024. The project is expected to help sustain long-term production from the Odd Job Field.
Tornado
The Tornado Field is producing from three Pliocene wells through the Helix Producer I, a ship-shaped, dynamically positioned production platform in the deepwater Gulf of America, which is operated by Talos Energy.
Kodiak
The Kodiak Field is producing from two wells, which are completed in the Middle Miocene sands. These wells are flowing through the Devils Tower Spar platform, which is operated by ENI US Operating Co. Inc. (ENI). One of these wells, the Kodiak-3 infill well, was brought online in April 2021. The well experienced production issues and was sidetracked and brought back online in 2022. Workover operations were completed in July 2024 and successfully restored the well productivity.
Winterfell
In January 2021, the company announced the Winterfell-1 exploration well encountered approximately 26 meters (85 feet) of net oil pay in two intervals. Winterfell was designed to test a sub-salt Upper Miocene prospect located in Green Canyon Block 944. In January 2022, the Winterfell-2 appraisal well in Green Canyon Block 943 was drilled to evaluate the adjacent fault block to the northwest of the original Winterfell discovery and was designed to test two horizons that were oil bearing in the Winterfell-1 well, with an exploration tail into a deeper horizon. The well discovered approximately 40 meters (120 feet) of net oil pay in the first and second horizons with better oil saturation and porosity than pre-drill expectations. The exploration tail discovered an additional oil-bearing horizon in a deeper reservoir which is also prospective in the blocks immediately to the north. The Field Development Plan for the Winterfell Field contemplates up to a five well tieback to the Heidelberg facility which is operated by Occidental Petroleum Corporation. The development drilling plan for the first phase commenced in the third quarter of 2023. The initial two production wells of the first phase were brought online in the third quarter of 2024 and the Winterfell-3 well was brought online in October 2024. Shortly after startup of the third well, production at the field was curtailed due to sand production from the third well seen at the production facility. In December 2024, production from Winterfell-1 and Winterfell-2 was restored and remediation work on Winterfell-3 is underway. Additional development drilling is expected to re-commence in 2025 with the drilling and completion of the Winterfell-4 well, which is expected to be online in the second half of 2025.
Tiberius
In July 2023, Kosmos spud the Tiberius infrastructure-led exploration prospect, which is located in block 964 of Keathley Canyon (33.3% working interest) in the Outer Wilcox play. In October 2023, the company announced the well encountered approximately 75 meters (250 feet) of net oil pay in the primary Wilcox target. Initial fluid and core analysis supports the production potential of the wells, with characteristics analogous with similar nearby discoveries in the Wilcox trend. In March 2024, Kosmos completed the acquisition of an additional 16.7% participating interest in the Tiberius area in Keathley Canyon Blocks 920 and 964 offshore Gulf of America. As a result of the transaction, Kosmos’ participating interest in Tiberius was increased from 33.3% to 50.0%. The Tiberius project continues to progress as a phased development with discussions ongoing with its partner to finalize the development plan and timing of a final investment decision.
Mauritania
In June 2012, the company entered into a petroleum contract covering offshore Mauritania Block C8 with the Islamic Republic of Mauritania. Cost recovery oil is apportioned to the contractor from up to 55% (62% for gas) of total production prior to profit oil being split between the Government of Mauritania and the contractor. Profit oil is then apportioned based upon R-factor tranches, where the R-factor is cumulative net revenues divided by the cumulative investment. In April 2024, the petroleum contract covering the BirAllah and Orca discoveries offshore Mauritania expired.
The C8 block is located on the western margin of the Mauritania Salt Basin offshore Mauritania and ranges in water depths from 100 to 3,000 meters with the company’s primary targets being Cretaceous sands in structural and stratigraphic traps. The company has drilled one successful exploration well and one appraisal well in its existing Block C8 acreage (Greater Tortue Ahmeyim).
Senegal
The Saint Louis Offshore Profond and Cayar Offshore Profond Blocks are located in the Senegal River Cretaceous petroleum system and range in water depth from 300 to 3,100 meters. The area is an extension of the working petroleum system in the Mauritania Salt Basin. The company has drilled three successful exploration wells and two appraisal wells.
In June 2018, the company entered the final renewal of the exploration period for the Senegal Cayar Offshore Profond and Saint Louis Offshore Profond Blocks. In July 2021, the term of the Cayar Offshore Profound license was extended for up to an additional three years, ending in July 2024, and in March 2024, the phase of the Cayar Block exploration license was extended an additional two years to July 2026. In the event of commercial success, the company has the right to develop and produce oil and/or gas for a period of 25 years from the grant of an exploitation authorization from the government, which may be extended on two separate occasions for a period of 10 years each under certain circumstances. The exploration period of the St. Louis Offshore Profound license expired in 2021.
Greater Tortue Ahmeyim (GTA) Development
The Greater Tortue Ahmeyim Field, discovered by the Tortue-1 well in 2015, in Mauritania Block C8 and by the Guembuel-1 well in January 2016, in the Saint-Louis Offshore Profond Block in Senegal covers an area within both the C8 and Saint-Louis Offshore Profond Blocks. Mauritania and Senegal agreed that the Greater Tortue Ahmeyim Field would be unitized for optimal resource recovery in the Inter-State Cooperation Agreement (ICA) signed in 2018. The GTA UUOA was agreed between the contractor groups of the C8 and Saint-Louis Offshore Profond Blocks and approved by the appropriate Ministers in Mauritania and Senegal in February 2019. BP Mauritania and BP Senegal are co-Unit Operator and allocate responsibilities for the initial development of the Greater Tortue Ahmeyim Field. During the second quarter of 2019, SMH and PETROSEN elected to increase their respective interests in their portion of the Greater Tortue Ahmeyim Unit to the maximum allowed percentages under the respective petroleum contracts. After the elections, the company's interest in the exploration areas of Block C8 offshore Mauritania and in Saint Louis Offshore Profound offshore Senegal are unchanged, however, its interest in the Greater Tortue Ahmeyim Unit is 26.8% in Mauritania and 26.7% in Senegal and is subject to redetermination of the participating interests pursuant to the terms of the GTA UUOA. In February 2019, Mauritania and Senegal each issued an exploitation authorization for the Greater Tortue Ahmeyim Unit area covered by the GTA UUOA.
The Greater Tortue Ahmeyim discoveries are significant, play-opening gas discoveries for the outboard Cretaceous petroleum system and are located approximately 120 kilometers offshore Mauritania and Senegal. The Greater Tortue Ahmeyim development straddles Block C8 offshore Mauritania and Saint Louis Offshore Profond Block offshore Senegal.
The company drilled four exploration and appraisal wells within the GTA development, Tortue-1, Guembeul-1, Ahmeyim-2 and Greater Tortue Ahmeyim-1. The wells penetrated multiple, excellent quality gas reservoirs, including the Lower Cenomanian, Upper Cenomanian and underlying Albian. The wells successfully delineated the Ahmeyim and Guembeul gas discoveries and demonstrated reservoir continuity, as well as static pressure communication between the three wells drilled within the Lower Cenomanian reservoir. The discoveries range in water depths from approximately 2,700 meters to 2,800 meters, with total depths drilled ranging from approximately 5,100 meters to 5,250 meters.
The Tortue-1 discovery well, located in Block C8 offshore Mauritania, intersected approximately 117 meters of net hydrocarbon pay. A single gas pool was encountered in the Lower Cenomanian objective, which comprises three reservoirs totaling 88 meters in thickness over a gross hydrocarbon interval of 160 meters. A fourth reservoir totaling 19 meters was penetrated within the Upper Cenomanian target over a gross hydrocarbon interval of 150 meters. The exploration well also intersected an additional 10 meters of net hydrocarbon pay in the lower Albian section, which is interpreted to be gas.
The Guembeul-1 discovery well, located in the northern part of the Saint Louis Offshore Profond area in Senegal, is located approximately five kilometers south of the Tortue-1 exploration well in Mauritania. The well encountered 101 meters of net gas pay in two excellent quality reservoirs, including 56 meters in the Lower Cenomanian and 45 meters in the underlying Albian, with no water encountered.
The Ahmeyim-2 appraisal well is located in Block C8 offshore Mauritania, approximately five kilometers northwest, and 200 meters down-dip of the basin-opening Tortue-1 discovery. The well confirmed significant thickening of the gross reservoir sequences down-dip. The Ahmeyim-2 well encountered 78 meters of net gas pay in two excellent quality reservoirs, including 46 meters in the Lower Cenomanian and 32 meters in the underlying Albian.
The Greater Tortue Ahmeyim-1 appraisal well, drilled on the eastern anticline within the unit development area of Greater Tortue Ahmeyim field, encountered approximately 30 meters of net gas pay in high quality Albian reservoir. The well was drilled in approximately 2,500 meters of water, approximately 10 kilometers inboard of the Guembeul-1A and Tortue-1 wells, to a total depth of 4,884 meters.
In 2017, the company completed a DST on the Tortue-1 well, demonstrating that the Tortue field is a world-class resource and confirming key development parameters including well deliverability, reservoir connectivity, and fluid composition. The Tortue-1 well flowed at a sustained, equipment-constrained rate of approximately 60 MMcfd during the main extended flow period, with minimal pressure drawdown, providing confidence in well designs that are each capable of producing approximately 200 MMcfd. The DST results confirmed a connected volume per well consistent with the current development scheme, which together with the high well rate is expected to result in a low number of development wells compared to equivalent schemes. Initial analysis of fluid samples collected during the test indicated Tortue gas is well suited for liquefaction given low levels of liquids and minimal impurities.
In December 2018, the company and its partners announced that a final investment decision for Phase 1 of the Greater Tortue Ahmeyim project had been agreed. The Greater Tortue Ahmeyim Phase 1 project is designed to produce gas from a deepwater subsea system to a mid-water FPSO, which processes the gas to make it liquefaction ready, and sends the gas through a pipeline to a FLNG facility. The FLNG facility is protected behind a nearshore hub (which serves as a breakwater and LNG terminal) and is located on the Mauritania and Senegal maritime border. The FLNG facility for Phase 1 is designed to produce approximately 2.5 million tons per annum on average. The project will provide LNG for global export, as well as make gas available for domestic use in both Mauritania and Senegal. Following a competitive tender process, BP Gas Marketing (BPGM) was selected as the buyer for the LNG offtake for GTA Phase 1, and the Tortue Phase 1 SPA was executed in February 2020 with an initial term through the end of 2033 with a seller’s option to extend the term for an additional 10 years.
On December 31, 2024, gas from the first phase of GTA started to flow from the subsea wells to the FPSO vessel ahead of delivery to the floating LNG vessel for liquefaction. Feed gas was delivered from the FPSO vessel to the floating LNG vessel in January 2025. Full commissioning activities of the floating LNG vessel has commenced with first LNG achieved in February 2025. The first LNG cargo is expected in the first quarter of 2025.
Yakaar and Teranga Discoveries
The Teranga discovery is located in the Cayar Offshore Profond block approximately 65 kilometers northwest of Dakar and was its second exploration well offshore Senegal. The Teranga-1 discovery well is located in nearly 1,800 meters of water and was drilled to a total depth of approximately 4,850 meters. The well encountered 31 meters of net gas pay in good quality reservoir in the Lower Cenomanian objective.
The Yakaar discovery is located in the Cayar Offshore Profond block offshore Senegal, approximately 95 kilometers northwest of Dakar in approximately 2,600 meters of water. The Yakaar-1 discovery well was drilled to a total depth of approximately 4,900 meters. The well intersected a gross hydrocarbon column of 120 meters in three pools within the primary Lower Cenomanian objective and encountered 45 meters of net pay. In September 2019, the company completed the Yakaar-2 appraisal well, which encountered approximately 30 meters of net gas pay. The Yakaar-2 well was drilled approximately nine kilometers from the Yakaar-1 exploration well and further delineated the southern extension of the field.
The results of the Yakaar-2 well underpin the company’s view that the Yakaar-Teranga resource base is world-scale and has the potential to support an LNG project that provides significant volumes of natural gas to both domestic and export markets. Development of Yakaar-Teranga is being considered in a phased approach with Phase 1 providing domestic gas and data to optimize the development of future phases.
The Yakaar and Teranga discoveries continue to be analyzed as a joint development. During 2023, the company continued progressing appraisal studies, maturing concept design, and proposed to partner that the Yakaar and Teranga discoveries in the Cayar Offshore Profond Block be pursued as a commercial joint development. PETROSEN agreed to the proposal, however, BP decided not to participate in the development and exploitation of the Yakaar and Teranga discoveries. In accordance with the provisions of the Contract for Exploration and Production Sharing of Hydrocarbons for the Cayar Offshore Profond Block and the related Joint Operating Agreement (the JOA), BP has waived its rights in respect of the Yakaar and Teranga discoveries. As provided in the JOA, Kosmos has assumed BP’s participating interest under the contract and the JOA and has become operator of the Cayar Offshore Profond Block, with customary government approvals having been received effective January 18, 2024. The participating interests in the Cayar Offshore Profond Block are Kosmos 90% and PETROSEN 10%, with PETROSEN having the right to increase its participating interest after issuance of an exploitation authorization to up to 35%. During 2024, Kosmos completed the concept development work and is working towards finalizing the partnership to support advancement of the project.
Equatorial Guinea
In March 2018, the company entered into a petroleum contract covering Block S with the Republic of Equatorial Guinea. Kosmos holds a 34% participating interest in Block S. The Equatorial Guinean national oil company, GEPetrol, has a 20% carried participating interest in the Block during the exploration period. Should a commercial discovery be made, GEPetrol's 20% carried interest will convert to a 20% participating interest. In December 2022, the company received formal approval to proceed to the second exploration sub-period for Block S ending in December 2024. In March 2023, the company closed a farm-out agreement with Panoro, whereby, Panoro acquired a 6.0% participating interest in Block S offshore Equatorial Guinea. As a result of the farm-out agreement, Kosmos’ participating interest in Block S was reduced to 34.0%. In October 2024, Kosmos elected to enter the next phase of the Block S exploration license with a scheduled expiration.
In June 2018, the company closed a farm-in agreement with a subsidiary of Ophir for Block EG-24, offshore Equatorial Guinea, whereby it acquired a 40% non-operated participating interest. In the first quarter of 2019, the company acquired Ophir's remaining interest in and operatorship of the block, which resulted in Kosmos owning an 80% participating interest in Block EG-24. GEPetrol has a 20% carried interest during the exploration period. In December 2022, the company received formal approval to enter the second sub-period of the exploration period ending in December 2024. In December 2024, the company received approval from the Ministry of Hydrocarbons and Mining Development for a twelve-month extension to December 2025 for the second sub-period of the exploration phase of Block EG-24. Should a commercial discovery be made, GEPetrol's 20% carried interest will convert to a 30% participating interest for all development and production operations.
In February 2023, Kosmos and Panoro Energy ASA (Panoro) entered into a petroleum contract covering Block EG-01 offshore Equatorial Guinea with the Republic of Equatorial Guinea. Kosmos holds a 24% participating interest in the block and the operator, Panoro, holds a 56% participating interest. GEPetrol has a 20% carried participating interest during the exploration period. Should a commercial discovery be made, GEPetrol’s 20% carried interest will convert to a 20% participating interest. Block EG-01 comprises approximately 59,400 acres (240 square kilometers), with a first exploration period of three years from the effective date (March 1, 2023).
The EG-01, EG-24 and S blocks are located in the southern part of the Gulf of Guinea, in the Republic of Equatorial Guinea, west of the Rio Muni petroleum province with water depths up to 2,300 meters. These blocks are located in a proven petroleum system, with its primary targets being Cretaceous sands in structural and stratigraphic traps. In total, the exploration petroleum contracts cover approximately 4,650 square kilometers and the company has extensive 3D seismic coverage over the blocks.
Ceiba Field and Okume Complex
In Equatorial Guinea, the company maintains a 40.4% undivided participating interest in the Ceiba Field and Okume Complex. Trident is the operator of the Ceiba Field and Okume Complex.
The shared development of the Ceiba Field and Okume Complex consists of six subsea-well clusters that feed production to the Ceiba FPSO which is shared by both fields through a system of risers. The Okume Complex includes six platforms with an export line to move Okume production to the Ceiba FPSO.
In May 2022, Kosmos and its joint venture partners agreed with the Ministry of Hydrocarbons and Mining Development of Equatorial Guinea to extend the Block G petroleum contract term; harmonizing the expiration of the Ceiba Field and Okume Complex production licenses (from 2029 and 2034 respectively) to 2040. The license extensions support the next phase of investment in the licenses.
The 2023 Ceiba Field and Okume Complex development rig campaign commenced in the fourth quarter of 2023. The campaign initially completed one production well workover. However, as a result of safety issues with the drilling rig, the operator terminated the rig contract in early February 2024. During 2024, the partnership secured an alternative rig and drilling contractor and re-commenced the infill drilling campaign operations in July 2024 bringing two infill production wells online in Block G in the fourth quarter of 2024.
Sao Tome and Principe
The company is the operator for the petroleum contract covering Block 5, offshore Sao Tome and Principe in the Gulf of Guinea. The block covers an area of approximately 527,000 acres (gross) in water depths ranging from 2,150 to 3,000 meters.
The company’s block is adjacent to, and represents a potential extension of, a proven and prolific petroleum system offshore Equatorial Guinea and northern Gabon comprising Cretaceous post-rift source rocks and Late Cretaceous reservoirs.
In August 2017, the company completed a 3D seismic survey of approximately 2,500 square kilometers offshore Sao Tome and Principe. Processing has been completed and the 3D seismic data has been integrated into its geological evaluation. The company continues to mature an inventory of prospects on the license area in Sao Tome and Principe and will continue to refine and assess the prospectivity. In April 2024, the company received approval to extend the current exploration phase for Block 5 offshore Sao Tome and Principe to May 2025.
Sales and Marketing
As provided under the Jubilee UUOA and the WCTP and DT petroleum contracts, the company is entitled to lift and sell its share of the Jubilee and TEN productions as are the other Jubilee Unit and TEN partners. The company has agreements with multiple oil marketing agents to market its share of the Jubilee and TEN Fields oil, and it approves the terms of each sale proposed by such agent. In Equatorial Guinea, as provided under the petroleum contract for Block G, the company is entitled to lift and sell its share of the Ceiba Field and Okume Complex production as are the other Block G partners. The company has crude oil marketing sales agreements with oil marketers to market its share of the Jubilee, TEN and Ceiba Field and Okume Complex oil, and it approves the terms of each sale proposed by such agents.
In the Gulf of America, the company sells crude oil to purchasers typically through monthly contracts, with the sale taking place at multiple points offshore, depending on the particular property. Natural gas is sold to purchasers monthly through long-term contracts, with the sale taking place either offshore or at an onshore gas processing plant after the removal of NGLs. The company actively markets its crude oil and natural gas to purchasers, and sales prices for purchased oil and natural gas volumes are negotiated with purchasers and are based on certain published indices. Since most of the oil and natural gas contracts are generally month-to-month and at varying physical locations, there are limited dedications of production to any one purchaser. The company sells the NGLs entrained in the natural gas that it produces. The arrangements to sell these products first require natural gas to be processed at an onshore gas processing plant. Once the liquids are removed and fractionated (separated into the individual hydrocarbon chains for sale), the products are sold by the processing plant. The residue gas left over is sold to natural gas purchasers as natural gas sales (referenced above). The contracts for NGL sales are with the processing plant. The prices received for the NGLs are either tied to indices or are based on what the processing plant can receive from a third-party purchaser. The gas processing and subsequent sales of NGLs are subject to contracts with longer terms and dedications of life of lease production from the company’s leases offshore.
In February 2020, the company, along with the co-venturers in the Greater Tortue Ahmeyim Field signed the Tortue Phase 1 SPA with BPGM to sell LNG free on board (FOB) from the Greater Tortue Ahmeyim Field located offshore Mauritania and Senegal. The annual contract quantity under the Tortue Phase 1 SPA is 127,951,000 MMBtu (the ACQ) which is equivalent to approximately 2.45 million tonnes per annum, subject to limited downward adjustment by the sellers. The Tortue Phase 1 SPA has an initial term through the end of 2033, which can be extended by a further ten years at the co-venturer’s option.
Environmental Matters
Kosmos also has an OSRP (Oil Spill Response Plan) which is approved by the Bureau of Safety and Environmental Enforcement (BSEE). The company is also a member of the Clean Gulf Associates (CGA) Oil Spill Cooperative, which provides oil spill response capabilities to meet regulatory requirements. In addition, the company is also a member of the Marine Spill Response Corporation (MSRC) which also provides various oil spill response services for coastal and inland environments in the Gulf of America.
The company is subject to the U.S. Foreign Corrupt Practices Act (FCPA) and other laws that prohibit improper payments or offers of payments to foreign government officials and political parties for the purpose of obtaining or retaining business or otherwise securing an improper business advantage. In addition, the United Kingdom has enacted the Bribery Act of 2010, and the company may be subject to that legislation under certain circumstances.
The Commodity Exchange Act also requires certain of the counterparties to the company’s derivatives instruments to be registered with the CFTC (Commodity Futures Trading Commission) and be subject to substantial regulation.
History
Kosmos Energy Ltd. was founded in 2003. The company was incorporated in state of Delaware in 2018.
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