BP to Create New LNG Hub in Africa with Latest Kosmos Buy
BP plc announced Monday that it has signed agreements with Kosmos Energy Ltd. to acquire a 62 percent working interest, including operatorship, of Kosmos’ exploration blocks in Mauritania and a 32.49 percent effective working interest in Kosmos’ Senegal exploration blocks.
The acreage includes the Tortue field, estimated by Kosmos to contain more than 15 trillion cubic feet of discovered gas resources. The total acreage, by Kosmos’ estimates, could contain roughly 50 Tcf of gas resource potential and in excess of 1 billion barrels of liquids resource potential.
BP will invest nearly $1 billion ($916 million), mostly in the form of a multi-year exploration and development carry, to acquire its stake in offshore Blocks C-6, C-8, C-12 and C-13 in Mauritania and interest in the Saint-Louis Profond and Cayar Profond blocks in Senegal.
“BP’s entry into Mauritania and Senegal represents an exciting strategic opportunity to work with Kosmos Energy in an emerging world-class hydrocarbon basin,” BP CEO Bob Dudley said.
“We believe our expertise in integrating the gas value chain, together with a talented exploration partner in Kosmos, along with the support of the Mauritanian and Senegalese governments brings together all the elements needed to create a new LNG hub in Africa,” he added.
Under the terms of the agreements, BP and Kosmos have agreed that Kosmos will remain the technical operator for the exploration phase of the project and drill three new exploration wells beginning in 2017.
In addition to the existing blocks, the companies have agreed to cooperate in areas of mutual interest in offshore Mauritania, Senegal and The Gambia with Kosmos acting as the exploration operator and BP as the development operator. Subject to government approvals, the agreements are expected to close by the first quarter of 2017.
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