Kosmos signs deal to divest Equatorial Guinea assets to Panoro

Core Viewpoint - Kosmos Energy has agreed to sell its 40.375% non-operating working interest in the Ceiba Field and Okume Complex to Panoro Energy for up to $219.5 million, which includes an upfront payment and contingent payments based on production and oil prices [1][2]. Transaction Details - The effective date for the transaction is set for January 1, 2025, with completion expected by mid-2026 [2]. - The deal has received approval from the Government of Equatorial Guinea and is pending standard approval from the Economic and Monetary Community of Central Africa [2]. Financial Implications - Kosmos anticipates cost savings of approximately $100 million over two years following the transaction through reduced capital expenditure and administrative costs [3]. - Proceeds from the sale will be used to pay down debt under its reserves-based lending credit facility [2][3]. Strategic Focus - The transaction allows Kosmos to focus on its core assets where it can add the most value, enhancing liquidity and accelerating debt reduction [4]. - Kosmos aims to high-grade its portfolio by monetizing later-life, non-operated production assets [4]. Panoro Energy's Perspective - Panoro Energy views the acquisition as transformational and aligned with its disciplined growth strategy [5]. - The additional interest in Block G is expected to enhance Panoro's understanding of the assets and their long-term cash flow potential [6]. Operational Context - Trident Energy operates Block G with a 40.375% interest, while GEPetrol holds a 5% revenue share [6]. - Kosmos recently reported that the Ghanaian parliament has ratified license extensions for its West Cape Three Points and Deepwater Tano Petroleum agreements [7].