Kosmos Energy has signed an agreement to sell its non-operating working interest of 40.375% in the Ceiba Field and Okume Complex assets offshore Equatorial Guinea to Panoro Energy for up to $219.5m (£162.31m).
The deal includes an upfront payment of $180m and future contingent payments of up to $39.5m tied to production levels and oil price thresholds.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Panoro will acquire the Kosmos subsidiary that holds the stake in Block G, which contains the producing Ceiba and Okume assets.
The effective date for the transaction was set for 1 January 2025, with completion anticipated by mid-2026. The Government of Equatorial Guinea has approved the deal, and it now awaits standard approval from the Economic and Monetary Community of Central Africa.
Kosmos plans to use proceeds from the transaction to pay down debt under its reserves-based lending credit facility.
Over the two years following the close of the transaction, Kosmos expects cost savings of around $100m through reduced capital expenditure (capex) and administrative costs.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataKosmos chairman and CEO Andrew Inglis said: “This transaction reflects our continued focus on capital discipline and balance sheet resilience.
“The high-grading of the portfolio by accelerating the monetisation of later-life, non-operated production assets enables Kosmos to focus our capital and expertise on our world-class assets where we can add the most value for our stakeholders over the long term.
“The proceeds from the transaction enhance liquidity and accelerate debt reduction, while the contingent payments ensure we retain exposure to future upside.”
The deal will enable Panoro to increase its stake in the assets to 54.625%.
Panoro executive chairman Julien Balkany said: “The acquisition of an additional 40.375% interest in Block G is both transformational and fully aligned with the disciplined and accretive growth strategy that has guided Panoro over many years.
“Block G has been core to Panoro’s success since we purchased our initial 14.25% working interest exactly five years ago, in February 2021. Our deep understanding of the producing Ceiba field and Okume complex gives us strong confidence in the assets’ long term potential and ability to continue generating material cash flow to enhance total shareholder returns.”
Trident Energy operates Block G with a 40.375% interest, while GEPetrol, Equatorial Guinea’s national oil company, holds a 5% revenue 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.
