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AfrOil PROJECTS & COMPANIES AfrOil

The GTA block straddles the maritime border between Mauritania and Senegal (Image: Kosmos Energy)

The partners took the decision to reduce capi- costs for its LNG are projected to come to just
tal costs. The 5mn tpy capacity represents “the above $4 per mmBtu for Asian deliveries and
sweet spot for leveraging all the major infra- even less for European ones, thanks to the lower
structure from phase one,” Kosmos CEO Andy capital costs.
Inglis told investors in an earnings call. Kosmos has been hit hard by the pandemic
BP, Kosmos and their partners Senegal’s Pet- and the resulting slump in oil and gas demand.
rosen and Mauritania’s SMPHM took a final It reported a pre-tax loss of $36.5mn in the third
investment decision (FID) on GTA’s first phase quarter, versus a $39.5mn profit a year earlier, as
in December 2018. First gas was scheduled for revenues fell 37% on low prices and production
2022 but has been pushed back to the first half cuts.
of 2023, because of disruptions caused by the Kosmos’ share of capital costs at GTA is
coronavirus (COVID-19) pandemic. anticipated to be around $725mn between
The group were also hoping to take FIDs on 2021 and 2023, Inglis said. But the company has
second and third phases at GTA this year, but established “a financing path” to cover this sum,
those milestones have been delayed until mid- so that it can retain its share in the project and
2022 and mid-2023 respectively. earn a sevenfold return on remaining invest-
The second phase will utilise spare capacity ment, he said.
at the subsea infrastructure being developed for Kosmos is talks with BP to sell the FPSO to
the first phase, Kosmos’ Inglis explained. The an off-balance sheet, special purpose vehicle
original floating production storage and offload- (SPV) for the back cost paid so far, or around
ing (FPSO) will also be expanded for the new $160mn net to Kosmos, the CEO continued.
stage, without the partners needing to acquire a The pair aim to close the deal in the first quarter
new one, he said. A second gas export line from of next year. The SPV will cover all future cap-
the FPSO to the hub terminal will also no longer ital obligations relating to the FPSO, funding a
be required. further $160mn of Kosmos’ costs. The company
“As a result, we believe phase two will be also plans to refinance a loan in 2021 in order to
the most competitive brownfield LNG expan- secure an extra $100mn.
sion project globally,” Inglis said, “with limited These moves are expected to fully cover Kos-
upstream capital requirements expected to be mos’ 2021 costs. It hopes to cover the remain-
less than $1bn gross to first gas.”Kosmos expects ing $300mn due in 2022 and 2023 with direct
to fund its share of phase-two costs entirely investment in Mauritania and Senegal, which it
using cash flow from the first one. Breakeven hopes to obtain by mid-2021. ™

Ghana orders merger of Sankofa, Afina

GHANA THE government of Ghana has reportedly In a letter viewed last week by Bloomberg,
ordered Eni of Italy to unitise the offshore Sank- Energy Minister John-Peter Amewu said that he
ofa field with Afina, a licence area assigned to a was issuing this demand because the companies
private Ghanaian company, Springfield Explo- had thus far failed to work out a joint plan for
ration and Production. development.

P18 www. NEWSBASE .com Week 46 18•November•2020