Kosmos Energy (“Kosmos”) (NYSE: KOS) announced today its 2013 planned capital program, which totals approximately $525 million. Development activities offshore Ghana comprise approximately 55 percent of the total anticipated amount, with the remaining 45 percent allocated for exploration and appraisal activities across Kosmos’ global exploration portfolio.
In addition, the Company estimates Jubilee field production to average between 105,000 and 115,000 barrels of oil per day in 2013, with the midpoint of the range representing an increase of greater than 50 percent from the 2012 average. Kosmos anticipates a year-end exit rate for 2013 to be above the high end of its annual guidance range. Included in the estimate is a planned two-week shutdown for regular maintenance at the Jubilee floating production, storage, and offloading vessel (FPSO).
Kosmos’ net interest in the estimated 2013 production average is approximately 25,150 barrels of oil per day, at the midpoint of the range. Based on the Company’s crude oil inventory position at the beginning of the year and its expected net portion of 2013 production, Kosmos anticipates selling nine crude oil cargoes during the year. Each crude oil cargo sold represents slightly less than one million barrels of oil and is anticipated to continue trading consistent with Brent crude pricing.
Brian F. Maxted, Chief Executive Officer, stated, “Kosmos’ strategy of organic growth through exploration and development success is highlighted by our 2013 capital program. Our plans for the year include advancing the development of the world-class Jubilee field, as well as further progressing our other discoveries offshore Ghana. Jubilee continues to demonstrate outstanding performance, with current field deliverability substantially above the FPSO capacity. This is a result of resolving the original well productivity issues and completing new Phase 1A wells, which are showing tremendous delivery. Throughout the year, we are challenging the Jubilee teams to identify opportunities to meaningfully enhance throughput of the production facility, allowing us to bring forward substantial value from the field.”
“Elsewhere, we are highly focused on maturing our existing exploration assets to the drilling phase and continuing the build-out of a world-class portfolio of impactful exploration opportunities. Key to our plans for 2013 and beyond is the ability to internally fund our planned investment programs, a result of the successes we have had to date, combined with our disciplined approach to capital spending. We are strongly positioned, both financially and operationally, to continue the momentum we have created and deliver new meaningful value for our shareholders,” Maxted added.
Kosmos’ estimated development program, which totals approximately $290 million, includes funds for further development at Jubilee, with the majority relating to the ongoing implementation of Phase 1A at the field. The Company estimates finalizing the drilling and completion of all Jubilee Phase 1A production and water injection wells by the middle part of the year. Our 2013 capital program also provides funds for the initiation of development at TEN (Tweneboa, Enyenra, and Ntomme), as well as additional appraisal activities and development studies for Mahogany, Teak, and Akasa. The TEN plan of development, which represents Kosmos’ second major project development, has been submitted to the government of Ghana and is awaiting approval.
Source: Business Wire
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