Kosmos Energy Provides Update on Ghana Operations
As previously announced, an issue with the turret bearing of the FPSO
Kosmos and its Partners have made excellent progress towards
establishing the best long-term solution, and based on the work
undertaken over the past four months, now sees converting the FPSO to a
permanently spread moored facility, with offtake through a new deepwater
offloading buoy, as the preferred long-term solution. The Partners are
now working with the Government of
Upon completion of the spread mooring work program, production is
expected to return to the levels achieved before the turret bearing
issue occurred. The Partners will review potential opportunities to
improve the efficiency of offtake procedures, which may include the use
of a larger DP shuttle tanker. The additional operating expenditure is
expected to be around
A deepwater offloading buoy, anticipated to be installed in the first half 2018, will restore full offloading functionality and remove the need for the DP shuttle and storage tankers and associated operating costs. Market enquiries are currently ongoing to estimate the cost and schedule for the fabrication and installation of this buoy.
Kosmos anticipates that the financial impact of lower Jubilee production as well as the additional capex and operating costs associated with the damage to the turret bearing will be mitigated through a combination of the comprehensive Hull and Machinery insurance, procured on behalf of the partnership, and the Loss of Production Income (LOPI) insurance obtained by Kosmos. Claims under both policies have been notified to our insurers.
The Tweneboa, Enyenra and Ntomme (TEN) project remains on schedule and within budget, with the project now over 96% complete and expected to deliver first oil within the next three to six weeks.
Hook-up and commissioning of the FPSO, connecting the pre-drilled wells to the vessel via the extensive subsea infrastructure, is nearing completion. During July, the integrated start up sequence is expected to be initiated with water injection to the Enyenra reservoir being followed by oil production. This sequence will then be repeated for the Ntomme reservoir.
A gradual ramp up in oil production towards the FPSO capacity of 80,000
bopd is anticipated around the end of 2016 as the facilities complete
performance testing and well production levels are increased to optimal
rates. Per operator guidance, average annualized production from TEN in
2016 is expected to be approximately 23,000 bopd gross. Additional
drilling is not expected to occur at TEN until after the resolution of
the Côte d’Ivoire and
Associated gas production at TEN is expected to be re-injected into the Ntomme reservoir gas cap until gas export begins. Gas export was planned to commence 12 months after field start up, with the Tweneboa gas reservoir coming on stream a further 12 months later. However, options to accelerate gas export are currently being evaluated as the fabrication of the gas export facilities is ahead of schedule with completion expected in late 2016, approximately six months early.
Kosmos Energy is a leading independent oil and gas exploration and
production company focused on frontier and emerging areas along the
Atlantic Margin. Our assets include existing production and other major
development projects offshore Ghana, as well as exploration licenses
with significant hydrocarbon potential
offshore Mauritania, Portugal, São Tomé and Príncipe,
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934. All statements, other than
statements of historical facts, included in this press release that
address activities, events or developments that Kosmos expects, believes
or anticipates will or may occur in the future are forward-looking
statements. Kosmos’ estimates and forward-looking statements are mainly
based on its current expectations and estimates of future events and
trends, which affect or may affect its businesses and operations.
Although Kosmos believes that these estimates and forward-looking
statements are based upon reasonable assumptions, they are subject to
several risks and uncertainties and are made in light of information
currently available to Kosmos. When used in this press release, the
words “anticipate,” “believe,” “intend,” “expect,” “plan,” “will” or
other similar words are intended to identify forward-looking statements.
Such statements are subject to a number of assumptions, risks and
uncertainties, many of which are beyond the control of Kosmos, which may
cause actual results to differ materially from those implied or
expressed by the forward-looking statements. Further information on such
assumptions, risks and uncertainties is available in Kosmos’
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Neal Shah, +1-214-445-9628
Rhys Williams, +1-214-445-9693
Thomas Golembeski, +1-214-445-9674