Kosmos Energy trims oil & gas portfolio with sale of assets off Equatorial Guinea

June 17, 2026, by Melisa Cavcic

U.S.-headquartered oil and gas exploration and production company Kosmos Energy has wrapped up the divestment of its non-operating working interest in production assets off the coast of Equatorial Guinea to the UK-headquartered independent E&P company Panoro Energy.

Kosmos Energy completes sale of production assets in Equatorial Guinea to Panoro; Source: Kosmos Energy via LinkedIn — Kosmos’ production assets in Equatorial Guinea changing hands; Source: Kosmos Energy via LinkedIn

Earlier this year, Panoro Energy agreed to acquire Kosmos Energy‘s subsidiary, which owns a 40.375% interest in the Trident Energy-operated Block G where the Ceiba field and Okume Complex production assets are located, with an upfront $180 million cash payment, subject to certain adjustments, plus contingent payments of $12.5 million linked to production performance at Ceiba and $9 million payable in each of 2027, 2028 and 2029, which are dependent on certain oil price and production thresholds.

The U.S. player has now confirmed the completion of the sale, which is perceived to enhance its portfolio, high-grade capital allocation, lower costs, and enhance liquidity. The final cash consideration on completion, post-closing adjustments, was approximately $127 million. The transaction proceeds will be used to repay borrowings under the firm’s reserves-based lending (RBL) credit facility.

Panoro held a 14.25% interest in Block G since early 2021, but this acquisition has increased the firm’s stake to 54.625%. The company’s next crude oil lifting at the block, and first post-completion of the acquisition, is for approximately 546,000 barrels and scheduled for the beginning of July.

Julien Balkany, Executive Chairman of Panoro, commented: “Having been a partner in Block G since 2021, we know the asset well and have a high degree of confidence in its quality, cash generation potential and remaining upside. With our interest now increasing to 54.625 per cent, this acquisition strengthens our production and reserves base and will enhance the frequency and size of our crude liftings, driving meaningful long-term cash flow expansion to enhance shareholder returns.

“This opportune acquisition, announced a couple of days before the start of the conflict in the Middle East, is consistent with Panoro’s strategy to expand its presence in Equatorial Guinea, where we see a lot of organic and external investment opportunities to achieve our growth ambition.”

The company claims that closing adjustments reflect the cash received from the assets in the first half of 2026 to completion on June 16, 2026. However, future contingent payments of up to around $40 million are subject to certain oil price and production thresholds.

Andrew G. Inglis, Kosmos Energy’s Chairman and Chief Executive Officer, commented: “We are pleased to have closed this transaction, a win-win for Kosmos and Panoro. For Kosmos, the transaction high grades our portfolio by divesting high unit operating cost production and increases balance sheet resilience, with retained exposure to future upside from the assets.

“Strategically, it also enables Kosmos to focus our capital and expertise on our world-class assets where we can add the most value for our stakeholders over the long-term. We’d like to thank CEMAC and the government of Equatorial Guinea for their timely approvals.”

Kosmos’ production year-to-date has been around 5,800 barrels of oil per day net to the company. An asset retirement obligation liability of around $140 million will be removed from the balance sheet.