Kosmos sheds light on Greater Tortue Ahmeyim delay
- Business developments & projects
Dallas-based Kosmos Energy noted that the Coronavirus impact on time-critical workstreams resulted in the delay of the Greater Tortue Ahmeyim LNG project.
The COVID-19 outbreak had an impact on the construction of the breakwater during the 2020 weather window. This resulted in the Phase 1 project timeline to be delayed by an expected twelve months. First gas from the project is now expected in the first half of 2023.
Kosmos added in its statement that the first phase of the project is currently over 30 percent complete.
To remind, as a result of the delay, the project operator BP filed a force majeure notice with the LNG shipper and FLNG specialist Golar. BP is seeking a delay in the delivery of the Gimi FLNG by a year.
The vessel with a design capacity of 2.5 mtpa of LNG was expected to start work at the project located on the maritime border of Mauritania and Senegal in 2022 and serve under a 20-year charter deal.
Kosmos further added that the delay is expected to result in a significant reduction in budgeted spend in 2020 as activity and milestone payments are delayed
With the re-phasing of the project timeline, Kosmos is working with the operator to establish a revised 2020 budget with the objectives of maintaining the project economics and extending the carry of its capital obligations through the end of this year. In addition, the company continues with the Tortue sell-down process to support a self-funded gas business, the statement reads.
Kosmos Energy’s chairman and CEO, Andrew Inglis, said, “Coronavirus has impacted the operator’s ability to execute the Greater Tortue Ahmeyim project. The year delay of the project as a result of missing the weather window is an inevitable consequence, but the safety of our people and those of our partners remains the priority during these unprecedented times.”