The firm has also signed three new production sharing contracts (PSC) for Block EG-21, Block S and Block W offshore Rio Muni.
As per the terms of the deal with Hess, Kosmos will be responsible for exploration and subsurface evaluation while its partner, Trident will be responsible for production operations and optimization.
The transactions are expected to expand Kosmos’ total gross acreage in the Gulf of Guinea by nearly 6,000km2, adding to its existing 25,000km2 position offshore Sao Tome in the same petroleum system.
Kosmos Energy chairman and CEO Andrew Inglis said: “This transaction expands our significant position in a proven, but under-explored oil basin.
“The Ceiba and Okume fields, which our team originally discovered and managed, provide low-cost, high-margin production with several identified opportunities for resource and value upside.”
Scheduled to be completed by year end, the deal is subject to customary closing conditions.
Upon completion of the deal, Kosmos Energy and Trident Energy will have 40.375% stakes each in the Ceiba Field and Okume Complex, while Tullow Oil and GE Petrol will have 14.25% and 5% stakes respectively.
Equatorial Guinea Mines and Hydrocarbons Minister Gabriel Mbaga Obiang Lima said: “We look forward to working with Kosmos as we continue to push the boundaries in oil and gas exploration.”
Kosmos Energy will have 40% stake in the EG-21, W and S Blocks, while Trident Energy and GE Petrol will have 40% and 20% interests respectively.
Image: Kosmos Energy signs PSC in Gulf of Guinea. Photo: courtesy of Business Wire.
