BP agree deal with Kosmos to partner discoveries in Mauritania and Senegal and agree to cooperate on future exploration, positioning themselves in an emerging world-class, low-cost gas basin with advantaged access to global markets
BP announced on 19 December that they have signed agreements with Kosmos Energy to acquire 62 per cent working interest, including operatorship of Kosmos' exploration blocks in Mauritania and a 32.49 per cent effective working interest in Kosmos' Senegal exploration blocks. This acreage holds world-class deepwater gas discovery and exploration prospectives in both areas.
The 33,000 sqkm of acreage covered by the agreements includes the Tortue field, estimated to contain more than 15 tcf of discovered gas resources. The total acreage, by Kosmos’ estimates, could contain roughly 50tcf of gas resource potential and in excess of 1 bn barrels of liquids resource potential.
BP will invest US$1bn mostly in the form of a multi-year exploration and development carry to acquire a 62 per cent interest and operatorship of offshore Blocks C-6, C-8, C-12 and C-13 in Mauritania and an effective 32.49 per cent interest in the Saint-Louis Profond and Cayar Profond blocks in Senegal.
BP chief executive officer Bob Dudley commented, “BP’s entry into Mauritania and Senegal represents an exciting strategic opportunity to work with Kosmos Energy in an emerging world-class hydrocarbon basin. We believe our expertise in integrating the gas value chain, together with a talented exploration partner in Kosmos, along with the support of the Mauritanian and Senegalese governments brings together all the elements needed to create a new LNG hub in Africa.”
In order to reduce development time and drive capital efficiency, the partners plan to process and transport the gas from Tortue at a nearshore LNG facility. The proposed complex could be expanded in phases to accommodate future gas discoveries.