Offshore staff

DALLAS – Kosmos Energy has entered an agreement to sell a package of offshore exploration interests to Shell.

These are in blocks offshore São Tomé & Príncipe, Suriname, Namibia, and South Africa. The terms comprise an upfront cash payment of around $100 million, with contingent sums of $50 million payable following each commercial discovery from the first four exploration wells drilled across the assets, capped at $100 million in total.

Three of the four wells are due to be drilled in 2021.

Kosmos aims to direct up to one-third of the initial proceeds toward wells on two infrastructure-led exploration prospects in the Gulf of Mexico, each of which – the company says – offers hub-scale potential.

The remainder would be used to reduce borrowings outstanding under the company’s credit facilities.

09/09/2020