Kosmos Energy, US oil and Gas Company based in New York has announced on the 4th February entering into a farm-out agreement with Chevron Mauritania Exploration Limited the Mauitanian subsidiary of Chevron Corporation. According to the agreement, Kosmos Energy will take a 30% rnon-operated working interest in each of the C8, C12 and C13 contract areas in exchange for paying a disproportionate share of the costs of one exploration well and a second contingent exploration well.
Under the terms of the farm-in, still subject to the approval of the Mauritanian government, Chevron Corporation will pay in a compensation for 30%, a disproportionate share of the costs of an exploration well and a potential second exploration well. However, Chevron Corporation will repay in equal proportions previous exploration costs on these blocks located in a water depth of between 1600 and 3000 m.
“The terms are consistent with our business strategy to maintain the status of operator during the exploration while working with leading industrial partners that will bring significant technical expertise and solid financial strength,” said Andrew G. Inglis, CEO of Kosmos.
“This agreement with Chevron validates the quality and scale of our Mauritania licenses, which enabled us to successfully farm out the acreage despite the current environment. The terms are consistent with our business strategy of retaining operatorship through exploration and collaborating with industrial leading partners who bring significant technical expertise and strong financial capabilities.” Added Andrew G. Inglis.
After the transaction, Kosmos will remain operator with 60% interest, against 30% for Chevron Corporation and 10% for the national hydrocarbon company and Mining Patrimony (SMHPM).
Kosmos’ 2015 exploration work program in Mauritania currently includes two wells to be drilled by the Atwood Achiever drillship. The first exploration well will test the Tortue prospect, with estimated resources of approximately 2 billion barrels of oil equivalent recoverable across both Mauritania and Senegal. A second exploration well will test the Marsouin prospect with estimated resources of approximately 300 million barrels of oil equivalent recoverable, replacing the previously announced Orca prospect in the 2015 drilling program.