Kosmos Energy Secures Ghana License Extensions to 2040, Drives Production Growth and Strengthens Financial Position
Kosmos Energy has achieved a major strategic milestone with the formal ratification by Ghana’s parliament of the license extensions for the West Cape Three Points and Deepwater Tano Petroleum Agreements. These agreements cover the prolific Jubilee and TEN fields offshore Ghana and now extend through 2040, providing long-term operational certainty for one of West Africa’s most important hydrocarbon provinces.
The ratification not only reinforces Kosmos’ partnership with the Government of Ghana but also unlocks substantial future investment, production growth, and enhanced domestic energy supply for the country.
Long-Term Commitment to Ghana’s Energy Future
The extension of the Jubilee and TEN licenses is expected to deliver significant benefits to Ghana’s economy and energy security. The agreements are projected to generate up to $2 billion in incremental investment over the life of the assets. This capital will support additional drilling activity, infrastructure optimization, and enhanced recovery initiatives aimed at maximizing value from existing reserves.
Beyond oil production, the extended agreements will increase the supply of affordable natural gas to Ghana’s domestic market. Gas from Jubilee and TEN plays a crucial role in powering Ghana’s electricity generation sector, helping stabilize supply while supporting industrial growth and household consumption.
Kosmos played a leading role in negotiating and executing the extensions, working closely with Ghanaian authorities and partners to finalize terms that align long-term national energy interests with sustainable development objectives.
As part of the amended Jubilee Plan of Development, up to 20 additional wells will be drilled in the field. This expanded drilling program is expected to enhance reservoir recovery and increase Jubilee’s 2P (proved and probable) reserves, reinforcing its status as a world-class offshore oil field with significant remaining potential.
Jubilee Field: Production Momentum Accelerates
Operational performance at Jubilee continues to strengthen. The J74 well, which came online in early January, has now fully ramped up and is producing approximately 13,000 barrels of oil per day (bopd) on a gross basis.
This additional output has lifted average gross Jubilee production to more than 70,000 bopd in February month-to-date, in line with company expectations. The strong performance underscores the reliability of field infrastructure and the effectiveness of ongoing reservoir management strategies.
Kosmos and its partners are continuing to advance the 2026 five-well drilling campaign. The first well in the program, J75, has already been drilled and encountered approximately 40 meters of net pay, confirming strong reservoir quality.
J75 is expected to be completed across three production zones, similar to the previously successful J74 and J72 wells. Once completed, the well is anticipated to come online around the end of the first quarter, further supporting production growth.
The continued drilling activity reflects Kosmos’ disciplined investment approach, focusing on high-return infill wells and reservoir optimization to sustain long-term output levels.
TEN Fields: Strategic FPSO Acquisition to Reduce Costs
At the TEN fields, Kosmos and its partners have taken a strategic step to enhance long-term economics by signing a sale and purchase agreement (SPA) to acquire the floating production, storage and offloading vessel (FPSO) servicing the asset.
The gross consideration for the acquisition is $205 million, with Kosmos’ net share approximately $40 million. Payment is expected upon completion at the end of the first quarter of 2027.
Ownership of the FPSO is anticipated to generate material operating expense reductions beginning in 2026 and beyond. By moving from a leasing model to asset ownership, the partnership expects to lower unit production costs, improve operational flexibility, and increase overall asset value.
The decision reflects Kosmos’ broader strategy of driving cost efficiency across its portfolio while maintaining high safety and operational standards.
Greater Tortue Ahmeyim (GTA): LNG Output Exceeds Nameplate Capacity
Outside Ghana, Kosmos continues to demonstrate strong operational performance in Mauritania and Senegal through the Greater Tortue Ahmeyim (GTA) LNG project.
Phase 1 of the GTA development shipped 3.5 gross LNG cargoes in January, marking continued progress following first gas and LNG production. Year-to-date, the field has averaged production of approximately 2.9 million tonnes per annum (mtpa) equivalent, exceeding the nameplate capacity of 2.7 mtpa.
Producing above nameplate capacity highlights the robust performance of the asset and the reliability of its infrastructure. The strong output levels reinforce GTA’s importance as a strategic gas export project for both Mauritania and Senegal, contributing to regional energy development and global LNG supply.
The project also strengthens Kosmos’ diversified production mix, balancing oil output from Ghana and Equatorial Guinea with LNG exposure in West Africa.
Strengthened Financial Position and Capital Disciplin
Kosmos has also made notable progress on the financial side of the business, enhancing liquidity and strengthening its capital structure.
In January, the company successfully completed a $350 million Norwegian bond issuance. The offering was well supported by both existing and new investors, demonstrating market confidence in Kosmos’ asset base and long-term strategy.
Proceeds from the bond were used strategically:
- $100 million was applied to repay borrowings under the Reserve Base Lending (RBL) facility.
- The remaining funds will be used to repurchase the company’s 2027 senior unsecured notes.
These actions improve the company’s debt maturity profile while maintaining financial flexibility to support ongoing development activities.
In addition, Kosmos has begun hedging its 2027 oil production, securing a floor price of $60 per barrel for two million barrels of oil. This hedging strategy provides downside protection and enhances cash flow visibility in a potentially volatile commodity price environment.
Leadership Perspective: A Milestone Moment
Andrew G. Inglis, Chairman and Chief Executive Officer of Kosmos Energy, described the parliamentary ratification as a defining milestone for both Ghana and the company.
He emphasized that Jubilee remains a world-class oil field with substantial remaining potential that can be unlocked through sustained investment, consistent drilling programs, and high facility reliability. He also highlighted the importance of leveraging advanced seismic acquisition and processing technologies to optimize future development.
With Jubilee production exceeding 70,000 bopd and GTA performing above nameplate capacity, Kosmos’ total production has reached record levels.
According to Inglis, the combination of operational momentum and financial progress significantly strengthens the company’s resilience and positions it to create long-term shareholder value.
Diversified Portfolio Across Strategic Offshore Basins
Kosmos Energy is a leading deepwater exploration and production company focused on meeting the world’s growing demand for energy. Its diversified asset portfolio includes offshore production in:
- Ghana
- Equatorial Guinea
- Mauritania
- Senegal
- The Gulf of America
The company has built its growth strategy around disciplined exploration success within proven basins, converting discoveries into high-quality development opportunities.
Kosmos’ listing on both the New York Stock Exchange and the London Stock Exchange under the ticker symbol KOS provides access to global capital markets while maintaining a strong international investor base.
Commitment to Sustainability and Responsible Operations
As part of its corporate philosophy, Kosmos emphasizes ethical and transparent business practices. The company’s Business Principles outline commitments to transparency, ethics, human rights, safety, and environmental stewardship.
The Sustainability Report further details its efforts to reduce environmental impact, support host communities, and maintain high operational safety standards across all jurisdictions.
By aligning long-term production growth with responsible development, Kosmos aims to balance energy demand with environmental and social responsibility.
