Kosmos stops the rot

FPSO Kwame Nkrumah, Jubilee field off Ghana

US independent Kosmos Energy reversed a second-quarter loss on the back of strong oil revenue from the Jubilee field off Ghana in which it is a partner.

The Dallas-based company reported a quarterly net profit of $57 million, versus a $71 million loss a year ago, as its revenue surged 70% over the year to $329.3 million.

Oil revenue, which accounted for the lion’s share of the total figure at $328 million, was driven by increased production and sales from the Tullow Oil-operated Jubilee field, while the company also benefited from higher oil prices as well as lower exploration, production and other costs.

The Jubilee partners are currently working to develop export infrastructure to ease gas-related capacity constraints that are limiting the field’s oil output.

Kosmos is looking to spud in the fourth quarter a controversial wildcat at the Gargaa prospect in the Cap Boujdour permit off Western Sahara - the subject of a territorial dispute between Morocco and the Polisario separatist movement - using newbuild drillship Atwood Achiever.

A second wildcat in Cap Boujdour is pencilled in for late 2015 that will likely be drilled by the same unit - due for delivery in late August - that Kosmos has on a three-year charter.

The company is also set to wrap up shortly a 3D seismic survey covering 5100 square kilometres in the permit, having recently completed a 4300 square-kilometre shoot at the Tarhazoute and Essaouira blocks off Morocco.

Its chief exploration officer Brian Maxted told Upstream earlier this year that drilling in Essaouira is slated to start next year with Tarhazoute potentially being drilled in 2016.

Meanwhile, Kosmos aims to launch a farm-out process later this year for its C8, C12 and C13 blocks off Mauritana following encouraging seismic results, with a first exploration well targeted for next year.

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