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Kosmos Energy buys Deep Gulf Energy for US$$1.23 bln

Aug 06, 2018
2 min read
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Kosmos Energy has agreed to acquire Deep Gulf Energy (DGE), a deepwater company operating in the Gulf of Mexico, from First Reserve and other shareholders for US$1.23 billion.

Under the deal, Kosmos will acquire DGE for total consideration of $1.23 billion, comprised of $925 million in cash and $300 million in Kosmos common shares issued to First Reserve, management, and other DGE shareholders.

With the acquisition, Kosmos adds to its deepwater Atlantic Margin portfolio an established business with attractive assets and a strong record of growing production and reserves through infrastructure-led exploration.

Acquiring DGE’s business will increase Kosmos’ production by more than 50 per cent to 70,000 barrels of oil equivalent per day (boed) from around 45,000 boed now, with the company’s estimated reserves rising 40 per cent to around 280 million barrels of oil equivalent, the firm said.

Andrew G. Inglis, chairman and chief executive officer, said: “With this acquisition, Kosmos continues to grow into a larger, more balanced exploration and production company, with increasingly diversified production, a pipeline of world-class development projects, and a portfolio of short- and longer-cycle exploration opportunities. The best deepwater assets can compete with the best of shale, and now is a good time to enter the Gulf of Mexico.”

The acquisition is set to close around the end of the third quarter 2018, subject to regulatory approval.