Slaughter and May is advising Kosmos Energy on its partnership with BP in Mauritania and Senegal

19 Dec 2016

Slaughter and May is advising Kosmos Energy (Kosmos) on its partnership with BP in Mauritania and Senegal.  The partnership combines Kosmos’ exploration expertise with BP’s deepwater development and LNG production and marketing expertise.

Under the terms of the arrangements, BP will assume named operatorship and acquire a 62 per cent. working interest in Kosmos’ licences covering blocks C6, C8, C12 and C13 offshore Mauritania, as well as an effective 32.49 per cent. working interest in the licences covering the Saint Louis Offshore Profond and Caya Offshore Profond blocks offshore Senegal.  Kosmos will maintain a 28 per cent. and 32.51 per cent. effective working interest in the licences offshore Mauritania and Senegal, respectively, and will continue as exploration operator.

In consideration, Kosmos will receive fixed consideration of $916 million, including:

  • $162 million in cash up front and a $221 million carry on future exploration and appraisal; and
  • a carry on development costs up to first gas production, subject to a maximum limit of $533 million.

Kosmos will also receive a contingent bonus of up to $2 per barrel, for up to 1 billion barrels of liquids, structured as a production royalty, subject to a future liquids discovery and oil price.

Kosmos is a leading independent oil and gas exploration and production company focused on frontier and emerging areas along the Atlantic Margin.  The company is listed on the New York Stock Exchange.

Contacts

Corporate: Steven Galbraith (partner), Hywel Davies (partner), Christian Boney (associate), Tracey Chen (trainee); Tax: William Watson (partner), Owen Williams (associate)


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