REG - Kosmos Energy Ltd - Ghana license extensions

Kosmos EnergyAnnouncement

04/06/2025 07:00

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RNS Number : 3012L  Kosmos Energy Limited  04 June 2025

THE GOVERNMENT OF GHANA, TULLOW OIL, KOSMOS ENERGY, PETROSA, GNPC AND EXPLORCO
SIGN MEMORANDUM OF UNDERSTANDING TO EXTEND GHANA PRODUCTION LICENCES TO 2040

 

DALLAS, Texas, June 4, 2025 - The Government of Ghana, Tullow Oil plc
(Tullow), Kosmos Energy (http://www.kosmosenergy.com/) (NYSE/LSE: KOS),
PetroSA, Ghana National Petroleum Company (GNPC) and Explorco are pleased to
announce that they have entered into a Memorandum of Understanding (MOU) to
extend the West Cape Three Points (WCTP) and Deep Water Tano (DWT) licenses to
2040, which cover the Jubilee and TEN fields in Ghana.

 

The MOU includes approval to drill up to 20 additional wells in the Jubilee
field, representing investment of up to $2 billion in Ghana over the life of
the licenses. As a result of the extension, the JV partnership expects to
realize a material increase in gross 2P reserves.

 

A number of principles are covered within the MOU that will help underpin the
continued development of the Jubilee and TEN fields, including:

 

·    A commitment to work to increase the supply of gas from the Jubilee
and TEN fields to approximately 130 mmscf/day

·    A reduced gas price for Jubilee associated gas

·    A guaranteed reimbursement mechanism for gas sales

·    Investment in GNPC and the Petroleum Commission's capacity with a
focus on the use of advanced technology

 

All terms and conditions of the existing WCTP and DWT Petroleum Agreements
remain in place and continue unchanged.

 

The next steps, following this MOU, are the submission for approval of a
Jubilee Plan of Development (PoD) Addendum, entering into new fully termed gas
sales agreements (GSA), and the submission for parliamentary approval of the
payment security mechanism and license extensions planned before the end of
the third quarter of 2025.

 

The Honorable John Abdulai Jinapor, Ghana's Minister for Energy and Green
Transition, said: "This Memorandum of Understanding between the Republic of
Ghana and the DWT and WCTP partners marks a significant step forward in our
nation's energy sector. Extending the licenses to 2040 demonstrates our
commitment to fostering a stable and attractive investment climate. This MOU
will not only ensure the continued production of oil, supporting our economic
growth, but also allow us to further develop our infrastructure and create
more job opportunities for our citizens. We are dedicated to responsible
resource management and look forward to a prosperous future fuelled by
sustainable energy practices."

 

Richard Miller, Chief Financial Officer and Interim Chief Executive Officer of
Tullow, commented: "This is a valuable step forward for the Government of
Ghana, Tullow and our JV partners, highlighting the collaborative and
constructive relationship we all have in reaching our shared goal of building
a better future for the people of Ghana, through responsible oil and gas
development. This extension and the fiscal stability of our contracts
emphasizes the opportunity Ghana represents to deliver additional value
through production and reserves additions, providing greater long-term
optionality and materiality to these core assets."

 

Andrew G. Inglis, Chairman and Chief Executive Officer of Kosmos, commented:
"This memorandum of understanding recognizes the importance of oil and gas in
Ghana and the desire of the new administration to create an attractive
environment for new investment in the sector. Extending the Ghana production
licenses is highly accretive, adding material reserves and enabling the
partnership to continue investing in the country for the long-term. This
investment is expected to maximize the value of the fields for the benefit of
the country's economic development and Kosmos' shareholders. We look forward
to working with President Mahama and his government to invest in and advance
Ghana's energy sector."

 

 

About Kosmos Energy

 

Kosmos Energy is a leading deepwater exploration and production company
focused on meeting the world's growing demand for energy. We have diversified
oil and gas production from assets offshore Ghana, Equatorial Guinea,
Mauritania, Senegal and the Gulf of America (formerly the U.S. Gulf of
Mexico). Additionally, in the proven basins where we operate we are advancing
high-quality development opportunities, which have come from our exploration
success. Kosmos is listed on the NYSE and LSE and is traded under the ticker
symbol KOS. As an ethical and transparent company, Kosmos is committed to
doing things the right way. The Company's Business Principles articulate our
commitment to transparency, ethics, human rights, safety and the environment.
Read more about this commitment in the Kosmos Sustainability Report. For
additional 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
facts, included in this press release that address activities, events or
developments that Kosmos expects, believes or anticipates will or may occur in
the future are forward-looking statements. Kosmos' estimates and
forward-looking statements are mainly based on its current expectations and
estimates of future events and trends, which affect or may affect its
businesses and operations. Although Kosmos believes that these estimates and
forward-looking statements are based upon 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," "will" or other
similar words are intended to identify forward-looking statements. Such
statements are subject to a number of assumptions, risks and uncertainties,
many of which are beyond the control of Kosmos, which may cause actual results
to differ materially from those implied or expressed by the forward-looking
statements. Further information on such assumptions, risks and uncertainties
is available in Kosmos' Securities and Exchange Commission ("SEC") filings.
Kosmos undertakes 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.

 

Management does not provide a reconciliation for forward looking non GAAP
financial measures where it is unable to provide a meaningful or accurate
calculation or estimation of reconciling items and the information is not
available without unreasonable effort. This is due to the inherent difficulty
of forecasting the occurrence and the financial impact of various items that
have not yet occurred, are out of our control or cannot be reasonably
predicted. For the same reasons, management is unable to address the probable
significance of the unavailable information. Forward looking non GAAP
financial measures provided without the most directly comparable GAAP
financial measures may vary materially from the corresponding GAAP financial
measures.

 

Investor Relations

Jamie Buckland

+44 (0) 203 954 2831

jbuckland@kosmosenergy.com

 

 

Media Relations

Thomas Golembeski

+1-214-445-9674

tgolembeski@kosmosenergy.com

 

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