Ghana's Jubilee Restarts - Kosmos

The Tullow-operated Jubilee oil and gas field offshore Ghana resumed production on May 3, said Kosmos CEO Andrew Inglis in a call to investors on May 9 afternoon.

This follows a scheduled outage that overran by roughly a month. During the scheduled downtime, a faulty turret bearing was identified on producer ship FPSO Kwame Nkrumah. A long-term permanent solution is still required, and a decision on how to implement this is pending, said Inglis.

He divulged that any future stoppage is unlikely to be material to Kosmos, as it has loss of production insurance that kicks in after any 60-day stoppage at $62/bbl for the following 365 days - although he conceded that the timing of reimbursements could have an impact on cash flow in the near-term. The volume covered by such insurance was indexed to production at the field in the 180-day prior period, he later added.

Mark Smedley