Kosmos sells FPSO to BP for lease-back
Kosmos Energy has sold to operator BP its Greater Tortue Ahmeyim ("GTA") floating, production, storage, and offloading vessel (FPSO), now being built by Technip in China, it said August 9. BP as the buyer will then lease the vessel to BP as operator, and Kosmos, as partner, will pay BP for its share of the lease as an operating expense. The gas production project has a 30-yr life.
After delays caused by the pandemic, the project offshore Senegal and Mauritania is moving ahead. BP awarded drilling contracts to Valaris in July and work is expected to start early next year. The vessel's delivery is expected late next year.
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Kosmos will spend the money on GTA development costs. of which it had estimated its share at around €350mn. That is now almost halved, at $190mn, with remaining cash calls on the project for 2021 covered by the sale. The rest of the money, as well as the additional savings from the transfer of remaining FPSO construction payments to BP, are expected to be largely realised in 2022, it said. The company also expects to refinance loans later this year, providing another $100mn for GTA.
Kosmos said work was going well: the living quarters on the FPSO have been installed; seven caissons have been transported offshore with three caissons installed to form a breakwater; and all subsea trees have been built.
CEO Andrew Inglis said the transaction "secures additional funding for our future development costs on the GTA project. This transaction demonstrates the strength and alignment of the GTA partnership. Kosmos, BP, the governments of Mauritania and Senegal, and the respective national oil companies, all recognise the strategic importance of the project and are working together to bring it to fruition."