BP wraps up Senegal transaction with Kosmos
Kosmos Energy has completed a transaction under which BP bought stake in its blocks off Senegal. The duo is looking to produce first gas from the Tortue project by 2021.
In the second half of December 2016, Kosmos and BP decided to team up in Mauritania and Senegal.
BP agreed to buy a 62% working interest, including operatorship, of Kosmos’ exploration blocks in Mauritania and a 32.49% effective working interest in Kosmos’ Senegal exploration blocks. The approximately 33,000 square kilometers of acreage includes the Tortue field, which is estimated to contain more than 15 tcf of discovered gas resources.
Kosmos confirmed the completion and Senegal government’s approval of the transaction on Thursday.
The company said that, under the terms of the deal, BP acquired a 49.99 percent interest in Kosmos BP Senegal Limited, Kosmos’ controlled affiliate company which holds a 65 percent participating interest in the Cayar Offshore Profond and the Saint Louis Offshore Profond blocks offshore Senegal.
Andrew G. Inglis, Kosmos Energy’s chairman and chief executive officer, said: “With the transaction now complete, Kosmos looks forward to working with the Government of Senegal and partners to move ahead with the next stage of our work program involving further exploration in the two blocks and seeking to produce first gas from the Tortue project by 2021.”
Following the completion of the transaction, BP now has 32.49% interest in the Senegal blocks while Kosmos’ interest has been reduced to 32.51%. The remaining 25% and 10% is held by Timis Corporation and Petrosen, respectively.
BP and Kosmos also agreed in December that Kosmos would remain the technical operator for the exploration phase of the project and drill three new exploration wells in 2017.