Kosmos signs deal to divest Equatorial Guinea assets to Panoro

Kosmos Energy has signed an statement to merchantability its non-operating moving involvement of 40.375% successful the Ceiba Field and Okume Complex assets offshore Equatorial Guinea to Panoro Energy for up to $219.5m (£162.31m).

The woody includes an upfront outgo of $180m and aboriginal contingent payments of up to $39.5m tied to accumulation levels and lipid terms thresholds.

Panoro volition get the Kosmos subsidiary that holds the involvement successful Block G, which contains the producing Ceiba and Okume assets.

The effectual day for the transaction was acceptable for 1 January 2025, with completion anticipated by mid-2026. The Government of Equatorial Guinea has approved the deal, and it present awaits modular support from the Economic and Monetary Community of Central Africa.

Kosmos plans to usage proceeds from the transaction to wage down indebtedness nether its reserves-based lending recognition facility.

Over the 2 years pursuing the adjacent of the transaction, Kosmos expects outgo savings of astir $100m done reduced superior expenditure (capex) and administrative costs.

Kosmos president and CEO Andrew Inglis said: “This transaction reflects our continued absorption connected superior subject and equilibrium expanse resilience.

“The high-grading of the portfolio by accelerating the monetisation of later-life, non-operated accumulation assets enables Kosmos to absorption our superior and expertise connected our world-class assets wherever we tin adhd the astir worth for our stakeholders implicit the agelong term.

“The proceeds from the transaction heighten liquidity and accelerate indebtedness reduction, portion the contingent payments guarantee we clasp vulnerability to aboriginal upside.”

The woody volition alteration Panoro to summation its involvement successful the assets to 54.625%.

Panoro enforcement president Julien Balkany said: “The acquisition of an further 40.375% involvement successful Block G is some transformational and afloat aligned with the disciplined and accretive maturation strategy that has guided Panoro implicit galore years.

“Block G has been halfway to Panoro’s occurrence since we purchased our archetypal 14.25% moving involvement precisely 5 years ago, successful February 2021. Our heavy knowing of the producing Ceiba tract and Okume analyzable gives america beardown assurance successful the assets’ agelong word imaginable and quality to proceed generating worldly currency travel to heighten full shareholder returns.”

Trident Energy operates Block G with a 40.375% interest, portion GEPetrol, Equatorial Guinea’s nationalist lipid company, holds a 5% gross share.

Earlier this month, Kosmos reported that the Ghanaian parliament has ratified licence extensions for the West Cape Three Points and Deepwater Tano Petroleum agreements.