Kosmos inks LNG supply deal with BP
Dallas-based Kosmos Energy said that together with its partners it has signed an LNG supply deal with BP Gas Marketing for volumes from Phase 1 of the Greater Tortue Ahmeyim project.
Under the agreement with BP’s unit, the project would deliver up to 2.45 million tonnes of LNG per annum over an initial term of up to 20 years, Kosmos said in its statement.
Following the signing of the SPA, Kosmos intends to book net proved reserves of approximately 100 million barrels of oil equivalent associated with Phase 1, as evaluated by the company’s independent reserve auditor Ryder Scott Company. The company expects to book additional reserves when further phases of the Tortue project are sanctioned and sale and purchase agreements signed for the offtake volumes.
“The signing of the SPA is an important milestone in the Greater Tortue Ahmeyim project for the Governments of Mauritania and Senegal, SMHPM, Petrosen, BP and Kosmos,” said Todd Niebruegge, senior vice president and head of the Mauritania-Senegal business unit at Kosmos Energy.
“With the signing of this agreement, we have materially increased the proved reserve base of the company and the project remains on track to deliver first gas in the first half of 2022,” he said.
It is worth reminding that BP reached the final investment decision for the Greater Tortue Ahmeyim field in December of 2018.
The Greater Tortue Ahmeyim project will produce gas from an ultra-deepwater subsea system and mid-water floating production, storage and offloading (FPSO) vessel, which will process the gas, removing heavier hydrocarbon components. The gas will then be transferred to a floating liquefied natural gas (FLNG) facility at a nearshore hub.
The FLNG facility is designed to provide circa 2.5 million tonnes of LNG per annum on average, with the total gas resources in the field estimated to be around 15 trillion cubic feet, with first gas expected in 2022.
BP Gas Marketing has been selected as the sole buyer for the investor partners’ LNG offtake for Tortue Phase 1.
Partners in the cross-border Greater Tortue Ahmeyim project, located offshore Mauritania and Senegal, include SMHPM, Petrosen, BP, and Kosmos.