Kosmos Energy Announces Completion of Greater Tortue Ahmeyim FPSO Sale and Lease Back Transaction
09 August 2021 - 3:55PM
Business Wire
Kosmos Energy (NYSE/LSE: KOS) (“Kosmos” or the “Company”)
announced today that the transaction for the sale and lease back of
the Greater Tortue Ahmeyim (“GTA”) floating, production, storage,
and offloading vessel (“FPSO”) has been successfully completed.
Completion of the transaction secures additional funding for
Kosmos’ future development costs on the GTA project. Capital
expenditures associated with the GTA project in 2021 net to Kosmos
were previously estimated to be around $350 million. With the
completion of the GTA FPSO sale and lease back transaction, Kosmos’
2021 capital expenditures associated with the GTA project have been
reduced to approximately $190 million, with remaining cash calls on
the project for 2021 covered through the proceeds of the sale. The
balance of the sale proceeds, as well as the additional savings
from the transfer of remaining FPSO construction payments to BP
Buyer, are expected to be largely realized in 2022.
The company expects to refinance National Oil Company loans
later this year, providing approximately $100 million in additional
financing for the GTA project.
FPSO Sale and Purchase Agreement (FPSO SPA) and Lease
Agreement
BP, as the operator of the GTA project (BP Operator), with the
consent of the GTA Unit participants and the respective States,
agreed to sell the GTA FPSO (which is currently under construction
by Technip Energies in China) to an affiliate of BP (BP Buyer). The
FPSO will be leased back to BP Operator under a long-term lease
agreement, for exclusive use in the GTA project.
BP Operator will continue to manage and supervise the
construction contract with Technip Energies. Delivery of the FPSO
to BP Buyer will occur after construction is complete and the FPSO
has entered international waters, with the lease to BP Operator
becoming effective on the same date, currently estimated to be late
third quarter of 2022.
Kosmos will reimburse BP Operator for its pro rata share of cost
under the lease agreement, which will be classified as an operating
expense.
GTA Project Status
Key workstreams across the GTA project continue to make good
progress year-to-date with the following milestones achieved:
- Floating LNG vessel: The four remaining sponsons have been
integrated in the final dry dock
- FPSO: The living quarters have been installed
- Breakwater: Seven caissons have now been transported offshore
with three caissons installed
- Subsea: All subsea trees have been constructed
Andrew G. Inglis, Kosmos Energy’s Chairman and Chief Executive
Officer, said: “We are pleased to have successfully completed this
transaction, which secures additional funding for our future
development costs on the GTA project. This transaction demonstrates
the strength and alignment of the GTA partnership. Kosmos, BP, the
Governments of Mauritania and Senegal, and the respective national
oil companies, all recognize the strategic importance of the
project and are working together to bring it to fruition.”
About Kosmos Energy
Kosmos is a full-cycle deepwater independent oil and gas
exploration and production company focused along the Atlantic
Margins. Our key assets include production offshore Ghana,
Equatorial Guinea and U.S. Gulf of Mexico, as well as a world-class
gas development offshore Mauritania and Senegal. Kosmos is listed
on the New York Stock Exchange and London Stock Exchange and is
traded under the ticker symbol KOS. As an ethical and transparent
company, Kosmos is committed to doing things the right way. The
Company’s Business Principles articulate our commitment to
transparency, ethics, human rights, safety and the environment.
Read more about this commitment in our Corporate Responsibility
Report. For additional information, visit www.kosmosenergy.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. All statements,
other than statements of historical facts, included in this press
release that address activities, events or developments that Kosmos
expects, believes or anticipates will or may occur in the future
are forward-looking statements. Kosmos’ estimates and
forward-looking statements are mainly based on its current
expectations and estimates of future events and trends, which
affect or may affect its businesses and operations. Although Kosmos
believes that these estimates and forward-looking statements are
based upon reasonable assumptions, they are subject to several
risks and uncertainties and are made in light of information
currently available to Kosmos. When used in this press release, the
words “anticipate,” “believe,” “intend,” “expect,” “plan,” “will”
or other similar words are intended to identify forward-looking
statements. Such statements are subject to a number of assumptions,
risks and uncertainties, many of which are beyond the control of
Kosmos, which may cause actual results to differ materially from
those implied or expressed by the forward-looking statements.
Further information on such assumptions, risks and uncertainties is
available in Kosmos’ Securities and Exchange Commission (“SEC”)
filings. Kosmos undertakes no obligation and does not intend to
update or correct these forward-looking statements to reflect
events or circumstances occurring after the date of this press
release, except as required by applicable law. You are cautioned
not to place undue reliance on these forward-looking statements,
which speak only as of the date of this press release. All
forward-looking statements are qualified in their entirety by this
cautionary statement.
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version on businesswire.com: https://www.businesswire.com/news/home/20210808005019/en/
Investor Relations Jamie Buckland +44 (0) 203 954 2831
jbuckland@kosmosenergy.com
Media Relations Thomas Golembeski +1-214-445-9674
tgolembeski@kosmosenergy.com
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