UK's BP has signed agreements with Kosmos Energy to acquire a 62 per cent working interest, including operatorship, of Kosmos’ exploration blocks in Mauritania and a 32.49 per cent effective working interest in Kosmos’ Senegal exploration blocks.
BP will invest nearly US$1 billion in the form of a multi-year exploration and development carry to acquire a 62 per cent interest and operatorship of offshore Blocks C-6, C-8, C-12 and C-13 in Mauritania and an effective 32.49 per cent interest in the Saint-Louis Profond and Cayar Profond blocks in Senegal.
The deals should be finialised by the first quarter of 2017.
The approximately 33,000 sq-km of acreage covered by today’s agreements includes the Tortue field, estimated by Kosmos to contain more than 15 tcf of discovered gas resources. The total acreage, by Kosmos’ estimates, could contain roughly 50tcf of gas resource potential and in excess of 1 billion barrels of liquids resource potential.
BP chief executive officer Bob Dudley said: “BP’s entry into Mauritania and Senegal represents an exciting strategic opportunity to work with Kosmos Energy in an emerging world-class hydrocarbon basin. We believe our expertise in integrating the gas value chain, together with a talented exploration partner in Kosmos, along with the support of the Mauritanian and Senegalese governments brings together all the elements needed to create a new LNG hub in Africa.”
Under the terms of the agreements, BP and Kosmos have also agreed that Kosmos will remain the technical operator for the exploration phase of the project and drill three new exploration wells beginning in 2017.
In addition to the existing blocks, the companies have agreed to cooperate in areas of mutual interest in offshore Mauritania, Senegal and The Gambia with Kosmos acting as the exploration operator and BP as the development operator.