Kosmos Energy Ltd signed a deal to divest its 40.375 percent non-operating stake in the Ceiba field and the Okume Complex offshore Equatorial Guinea to partner Panoro Energy ASA for up to $219.5 million, the companies said Tuesday.
The disposition represents the Dallas, Texas-based company’s production assets in the Central African country. Kosmos retains its interests in offshore exploration blocks EG-01 and EG-24, which it said “provide exploration opportunities for near-field short-cycle tie-backs through existing infrastructure with good fiscal terms, as well as larger play extension exploration opportunities”.
“The transaction enhances liquidity from monetizing non-core assets and accelerates debt reduction”, it said in an online statement. “Proceeds will be used to reduce borrowings outstanding under the reserves-based lending (RBL) credit facility”.
The RBL banks have agreed on a waiver allowing Kosmos to issue new secured financing, “which benefits from the subordinated guarantees currently provided to the existing unsecured notes, subject to final legal documentation”, according to a Kosmos statement January 5.
Under the transaction with London-based, Oslo-listed Panoro, Kosmos is selling its subsidiary in Block G, where Ceiba and Okume are located.
“The consideration consists of an upfront cash payment of $180 million, subject to certain adjustments, plus contingent payments of $12.5 million linked to production performance at the Ceiba field and $9 million payable in each of 2027, 2028 and 2029, which are subject to certain oil price and production thresholds”, Kosmos said.
“The transaction has received approval from the government of Equatorial Guinea, and completion only remains subject to CEMAC customary approval”, it added.
“Over the two-year period post completion of the transaction, Kosmos expects to realize approximately $100 million in total savings across capital expenditures and general and administrative expenses”.
Panoro already owns 14.25 percent in Block G, which will increase to 54.625 percent upon the completion of the transaction.
Panoro noted in a separate statement Kosmos’ stake represented a net production of 8,271 barrels of oil per day (bopd) last year.
Based on reserve figures as of 2024, the acquisition adds net proven and probable reserves of 46 million barrels “with robust operating margins” and contingent resources of 29 million barrels, Panoro said.
Panoro is “on path to achieve group net production of 20,000 bopd in 2027”, it said.
Part of a recently completed private issuance of 19,999,999 shares, which raised around $49 million gross, will be used to fund the purchase. The remainder of the payment to Kosmos will be settled through a $150 million tap issue under Panoro’s existing senior secured bond, as well as available funds, Panoro said in another statement announcing the completion of the private placement.
Panoro executive chair Julien Balkany said the acquisition “more than doubles Panoro’s reserves base, substantially increases production and will enhance the frequency and size of our crude liftings, driving meaningful long-term cash flow expansion”.
Block G is operated by Trident Energy with a 40.375 percent stake. Equatorial Guinea’s national oil company GEPetrol owns the remaining five percent.
Panoro and Kosmos remain partners in EG-01. Panoro operates the block with a 56 percent stake. Kosmos owns 24 percent. GEPetrol has 20 percent.
In EG-24, Kosmos is operator with an 80 percent stake. GEPetrol owns 20 percent.
To contact the author, email jov.onsat@rigzone.com
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