Kosmos Energy says it has received notice from Tullow Oil Plc and PetroSA that they intend to exercise their pre-emption rights in relation to the sale of Occidental Petroleum’s interests in the Jubilee and TEN fields to Kosmos, announced on October 13, 2021.
The exercise of pre-emption rights is subject to finalising definitive agreements with Kosmos/Anadarko WCTP Company and requires approval from GNPC and Ghana’s Ministry of Energy.
If completed, Kosmos’ ultimate interest in Jubilee would be reduced by 3.8 percent to 38.3 percent (Kosmos retains ~80 percent of the original acquired interest), and Kosmos’ ultimate interest in TEN would be reduced by 8.3 percent to 19.8 percent (Kosmos retains ~25 percent of the original acquired interest).
Consideration due to Kosmos would be approximately US$150m based on the headline purchase price of US$550m and is subject to certain closing adjustments.
Kosmos said it would anticipate using any potential proceeds to accelerate debt repayment.
“If pre-emption is completed, Kosmos will provide a further update to the market in due course,” the company added.
Kosmos is a full-cycle deepwater independent oil and gas exploration and production company focused along the Atlantic Margins.
Its key assets include production offshore Ghana, Equatorial Guinea and U.S. Gulf of Mexico, as well as a world-class gas development offshore Mauritania and Senegal.