Dallas-based Kosmos Energy in partnership with newly formed Trident Energy has agreed to buy Hess’ operated stake in the Ceiba and Okume oilfields in the Rio Muni basin of Equatorial Guinea.
The sale will see the majority ownership and operatorship of the two oil producing areas to Kosmos. In addition to Kosmos’ asset acquisition of Ceiba and Okume, Kosmos also signed three production sharing contracts today with the Ministry of Mines and Hydrocarbons and GEPetrol. The existing investors Tullow Oil and GEPetrol will now enter partnership with Kosmos Energy.
The deal is expected to be finalised by the end of 2017.
"This transaction expands our significant position in a proven, but under-explored oil basin. Our partnership allows us to add value through our core expertise while leveraging the proven management team at Trident to deliver the upside from the Ceiba and Okume fields. In addition, the attractive purchase price means the acquisition is immediately accretive from both a value and leverage perspective, and enhances our already strong financial position,”said Andrew G. Inglis, chairman and chief executive officer
Under the terms of the agreements, Kosmos will be primarily responsible for exploration and subsurface evaluation while Trident, a newly formed international oil and gas company supported by Warburg Pincus, will be primarily responsible for production operations and optimisation.
The acquisition will increase Kosmos’ total gross acreage in the Gulf of Guinea by approximately 6,000 square kilometres, adding to its existing 25,000 square kilometres position offshore Sao Tome in the same area.
The new JV will have an 85 per cent stake, while partners Tullow Oil will hold 15 per cent and national oil company GEPetrol will have the remaining 5 per cent.