Kosmos, Trident Buy Out Hess from Eq Guinea
Hess said late October 23 it had agreed to sell all its interests offshore Equatorial Guinea to Kosmos Energy and Trident Energy on a 50-50 basis for a total consideration of $650mn, effective January 1, 2017.
Kosmos said its move represented a reinforcement of its "strategic position in the Gulf of Guinea".
Kosmos and Trident are acquiring Hess' interests in the adjacent Ceiba oil field and Okume complex assets offshore Equatorial Guinea on a 50-50 basis. Under the terms of the agreements, Kosmos will be primarily responsible for exploration and subsurface evaluation while Trident, a newly formed international oil and gas company supported by Warburg Pincus, will be primarily responsible for production operations and optimisation.
Also, as announced earlier October 23, Kosmos (with Trident) will acquire exploration blocks W, S and EG-21, all close to Hess' assets.
Kosmos said the deal increases 'gross' acreage that it operates in the Gulf of Guinea by some 6,000 km2, adding to its existing 25,000 km2 position offshore Sao Tome in the same petroleum system.
Equatoguinean state producer GE Petrol will retain a minority 20% interest in the three exploration blocks, and a 5% stake in Ceiba and Okume. Also Tullow Oil retains a 14.25% interest in Ceiba and Okume.
The same day, Hess announced the sale of its assets in Norway to BP Aker. CEO John Hess said October 24: “We are focusing our portfolio on higher return assets and reducing our breakeven oil price. Proceeds from these asset sales, along with cash on the balance sheet, will pre-fund development of our world class investment opportunity in offshore Guyana."
Net effective participating interests, upon transaction closure (Graphic credit: Kosmos)
Kosmos map showing its operated interests offshore Sao Tome e Principe to the left, and its newly acquired interests offshore Equatorial Guinea to the top right (Map credit: Kosmos)
Mark Smedley