DALLAS – (COMMERCIAL THREAD) – Kosmos Energy (NYSE / LSE: KOS) (“Kosmos” or the “Company”) today announced that the transaction for the sale and leaseback of the floating Greater Tortue Ahmeyim (“GTA”), production, Storage and Unloading Vessel (“FPSO”) has been successfully completed.

Completion of the transaction secures additional funding for Kosmos’ future development costs on the GTA project. The capital expenditure associated with the GTA project in 2021 net for Kosmos was previously estimated to be around $ 350 million. With the completion of the FPSO GTA sale and leaseback transaction, Kosmos’ capital expenditure for 2021 associated with the GTA project has been reduced to approximately $ 190 million, with remaining cash calls on the project for 2021. being covered by the proceeds of the sale. The balance of the proceeds from the sale, along with the additional savings resulting from the transfer of the remaining FPSO construction payments to BP Buyer, are expected to be largely realized in 2022.

The company plans to refinance loans from the National Oil Company later this year, providing around $ 100 million in additional financing for the GTA project.

FPSO Sale and Purchase Agreement (FPSO SPA) and Rental Agreement

BP, as operator of the GTA project (BP Operator), with the agreement of the participants of the GTA Unit and the respective states, has agreed to sell the FPSO GTA (under construction by Technip Energies in China) to a subsidiary of BP (BP Buyer). The FPSO will be re-let to BP Operator under a long-term rental contract, for exclusive use in the GTA project.

BP Operator will continue to manage and supervise the construction contract with Technip Energies. Delivery of the FPSO to buyer BP will take place once construction is complete and the FPSO has entered international waters, with the lease with operator BP taking effect on the same date, currently estimated at the end of the third quarter of 2022.

Kosmos will reimburse BP Operator for its pro rata share of the costs under the lease, which will be classified as an operating expense.

GTA Project Status

The main lines of work of the GTA project have continued to progress well since the start of the year with the following milestones reached:

  • Floating LNG vessel: The remaining four floats were integrated into the final dry dock

  • FPSO: The living quarters have been installed

  • Breakwater: Seven caissons have now been transported offshore with three caissons installed

  • Submarine: All underwater trees have been built

Andrew G. Inglis, Chairman and CEO of Kosmos Energy, said: “We are pleased to have successfully completed this transaction, which secures additional funding for our future development costs on the GTA project. This transaction demonstrates the strength and alignment of GTA’s partnership. Kosmos, BP, the Mauritanian and Senegalese governments, and the respective national oil companies, all recognize the strategic importance of the project and are working together to bring it to fruition.

About Kosmos Energy

Kosmos is an independent full-cycle deepwater oil and gas exploration and production company focused along the Atlantic margins. Our main assets include production off Ghana, Equatorial Guinea and the Gulf of Mexico in the United States, as well as world-class gas development off Mauritania and Senegal. Kosmos is listed on the New York Stock Exchange and the London Stock Exchange and is listed under the ticker symbol KOS. As an ethical and transparent company, Kosmos is committed to doing things right. The company’s business principles express our commitment to transparency, ethics, human rights, safety and the environment. Learn more about this commitment in our corporate responsibility report. For more information, visit www.kosmosenergy.com.

Forward-looking statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, included in this press release press that deal with activities, events or developments that Kosmos expects, believes or anticipates will occur or may occur in the future are forward-looking statements. Kosmos’ estimates and forward-looking statements are primarily based on its current expectations and estimates of future events and trends, which affect or may affect its business and operations. Although Kosmos believes these estimates and forward-looking statements are based on reasonable assumptions, they are subject to several risks and uncertainties and are made in light of information currently available to Kosmos. When used in this press release, the words “anticipate”, “believe”, “intend”, “expect”, “plan”, “” or other similar words are intended to identify forward-looking statements. These statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond Kosmos’ control, which may cause actual results to differ materially from those suggested or expressed by forward-looking statements. Further information on these assumptions, risks and uncertainties can be found in the documents filed with the Securities and Exchange Commission (“SEC”) of Kosmos. Kosmos assumes no obligation and does not intend to update or correct these forward-looking statements to reflect events or circumstances occurring after the date of this press release, except as required by applicable law. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement.


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