Kosmos Energy seeks farm-down in Senegal
Independent upstream company Kosmos Energy, is seeking firms to buy a substantial stake of its participation in the Grand Tortue Ahmeyim Complex, offshore Senegal and Mauritania.
Following a final investment decision taken last December by the BP-led joint venture, Kosmos Energy expressed its intention to decrease its participation to around 10 percent, from its current 28 percent, following interest from multiple third parties.
According to the statements made during its fourth-quarter and annual results presentation in London, Kosmos said that it plans to cash in part of its stake, subsequently reducing development expenditure in the near future.
The company also said that it intends to reduce capital expenditure in 2019 to a figure between $425 million and $475 million, cutting down from previous estimates of between $500 million and $600 million.
The company reported fourth-quarter 2018 revenues at $301.4 million – compared with $187.1 million in the same quarter of 2017 – on sales of 5.1 million barrels of oil equivalent (boe) in 2018 as compared to 2.9 million boe in 2017.
“Kosmos is now well positioned to grow cash flow, reserves and production through a combination of exploitation, development, infrastructure-led exploration and basin-opening exploration activities,” said Kosmos Energy CEO, Andrew Inglis.
The company aims to drill six wells this year, including two wells offshore Equatorial Guinea, following acreage acquisitions earlier this year. It aims to continue operating with a balanced set of assets, including proven infrastructure-led basins, emerging basins and frontier basins.