Kosmos Energy enters Equatorial Guinea Oil and Gas sector

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The Ministry of Mines and Hydrocarbons of Equatorial Guinea, Kosmos Energy of the US and national oil company GEPetrol have signed three new production sharing contracts (PSC) for Block EG-21, Block S and Block W offshore Rio Muni.

The deal marks Kosmos first PSCs in Equatorial Guinea.

Block EG-21 was offered for tender during the EG Ronda 2016 (Egronda2016.com) oil and gas licensing round. Block S and Block W, previously operated by CNOOC and PanAtlantic Energy respectively, were negotiated directly with Kosmos and were not offered under the open bidding round. Block EG-21 covers 2 495 square kilometers, Block S covers 1 245 square kilometers and Block W is 2 254 square kilometers. In each block, Kosmos will hold an 80 percent stake and GEPetrol will control the remaining 20 percent.

“Kosmos Energy has demonstrated extraordinary and consistent success in frontier exploration projects in West Africa. We trust Kosmos will bring important knowledge and technology to Equatorial Guinea, an established oil and gas producer in Africa with proven potential. We look forward to working with Kosmos as we continue to push the boundaries in oil and gas exploration,” says Gabriel Mbaga Obiang Lima, Equatorial Guinea Minister of Mines and Hydrocarbons.

Kosmos Energy has already earned a reputation as a top frontier explorer in West Africa, having made mega-discoveries off the coasts of Senegal and Mauritania.

Kosmos made one of the largest finds in a decade in West Africa with Ghana’s Jubilee field in 2010.

Triton Energy, where Kosmos co-founder Brian Maxted served as senior vice president for exploration, was responsible for a series of discoveries in the Rio Muni basin in Equatorial Guinea, including the Ceiba field in 1999.

The PSCs for the block are based on Equatorial Guinea’s model PSC, and stipulate minimum work programs that comprise a first exploratory period of three years, which include acquiring seismic data, a second exploratory period of two years, which includes drilling an exploratory well and the possibility of two one-year extensions, which include requirements to conduct seismic interpretation and drill another exploration well, respectively. The PSC also stipulates spending on local content and social responsibility.

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Bontle Moeng is the Founder and Managing Director of BizNis Africa. Moeng has spent 15 years working in the digital and online media industry across Africa. She applied her trade at True Love magazine prior to discovering her passion for Investment news in key sectors across Africa. Moeng previously worked for ITWeb, Starfish Mobile Technologies, ITNewsAfrica, AVATAR Agency, eNitiate, Global Interface Consulting and Havas Johannesburg. Her primary focus is to provide solid and valuable content on investment opportunities for the ICT, Energy and Mining sectors across Africa. In addition, the online news publication assists global companies to expand their presence in Africa. Email: news@biznisafrica.co.za

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