Offshore staff
DALLAS, Texas – Kosmos Energy has issued an update on the sale of Occidental Petroleum’s interests in the producing Jubilee and TEN fields offshore Ghana.
After negotiating a deal with Occidental, Kosmos received notice last November from operator and partner PetroSA that they intended to exercise their pre-emption rights in relation to the sale.
Kosmos and Tullow have now concluded their pre-emption transaction. For PetroSA, the process continues and remains subject to the execution of definitive agreements and receipt of government approvals.
For Kosmos, the company’s ultimate interest in Jubilee will reduce by 3.8% to 38.3% and its share of TEN will drop by 8.3% to 19.8%.
The consideration Tullow paid to Kosmos after taking into account closing adjustments was around $118 million in the first quarter, with ~$10 million more likely payable on completion of the PetroSA pre-emption process.
Kosmos plans to use the proceed to accelerate its debt reduction.
3/21/2022
