BP is targeting to make a final investment decision on the second phase of its Greater Tortue Ahmeyim (GTA) liquefied natural gas development off Mauritania and Senegal at the end of next year, according to project partner Kosmos Energy.

The UK supermajor and its partners in the huge development that straddles the maritime boundaries of the two African nations had already significantly scaled back the planned size — and projected cost — of GTA 2.

As of late last year, project sanction at the 2.5 million tonnes per annum second phase — which is set to cost $1 billion — was seen in 2023.

On Monday, US independent Kosmos said: "The strong progress with Phase 1 is enabling the advancement of Phase 2 towards final investment decision, which is targeted for the end of 2022.

"Kosmos continues to collaborate with operator BP and the national oil companies of Mauritania and Senegal on a more capital efficient project, which leverages the infrastructure built in Phase 1 to reduce costs and enhance the returns of future phases."

GTA 1 is expected to have a price tag of $4 billion, an increase of about $300 million on previous estimates, due to the cost of dealing with Covid 19-related issues and an associated six-month force majeure on the project.

Due online in the first half of 2023, GTA 1 involves deep-water subsea wells sending gas and liquids to an FPSO moored on the continental shelf.

Liquids will be offloaded onto shuttle tankers with gas piped to a 2.5 million tpa floating LNG vessel (supplied by Golar LNG) situated — along with other facilities, including utility and accommodation platforms — behind a shallow-water breakwater some 15 kilometres off St Louis port.

Kosmos said on Monday that Phase 1 was around 50% complete by the end of last year.

Total gas resources at GTA are estimated to be around 15 trillion cubic feet.

US Gulf operations

Kosmos, which unveiled its fourth-quarter and full-year 2020 financial results on Monday, also said that it is working with operator Beacon Offshore and partners in Green Canyon Block 944 in the US Gulf of Mexico on appraisal and development options for the Winterfell oil discovery, made in January.

Kosmos also said it plans to drill a second infrastructure-led exploration well in the second half of this year in the US Gulf, at the Zora prospect.

"After the encouraging results from the Tornado-4 water injection well in 2020, another infill well at Tornado is planned by the operator in the middle of this year," Kosmos added of its US Gulf operations.

Financial results

Kosmos posted a net profit of $7.96 million in the fourth quarter last year, up from a loss of $35.77 million in the comparable period a year earlier.

Revenues in the fourth quarter hit $366.32 million, down from $460.22 million in the last quarter of 2019 as the Covid-19 pandemic hammered oil demand and prices.

For the full year of 2020, Kosmos ran up a loss of $411.59 million as against a loss of $55.78 million for 2019.

Revenues for last year were $896.2 million, down from $1.51 billion a year earlier.

Kosmos booked impairments on long-lived assets of $153.96 million last year.

Field Development

BP sets sights on Phase 2 sanction off Mauritania and Senegal in late 2022