Tortue Ahmeyim LNG Phase 1 FID agreed upon by Kosmos, BP others

Kosmos Energy (NYSE:KOS)(LSE:KOS) and its partners announced today that a Final Investment Decision (FID) for Phase 1 of the Greater Tortue Ahmeyim project has been agreed. The decision was made by Kosmos, BP, Petrosen and SMHPM following a meeting to agree final elements held in Nouakchott between President Mohamed Ould Abdel Aziz of Mauritania and President Macky Sall of Senegal.

The Greater Tortue Ahmeyim project will produce gas from a deepwater subsea system and mid-water FPSO to a floating liquefied natural gas (FLNG) facility at a nearshore hub located on the Mauritania and Senegal maritime border. The FLNG facility for Phase 1 is designed to provide approximately 2.5 million tons per annum on average, with the total recoverable gas in the field estimated to be around 15 trillion cubic feet. The project will provide LNG for global export, as well as make gas available for domestic use in both Mauritania and Senegal. First gas for the project is expected in the first half of 2022. Following a competitive tender process involving all partners, BP Gas Marketing has been selected as the buyer for the LNG offtake for Greater Tortue Ahmeyim Phase 1.

Andrew G. Inglis, chairman and chief executive officer, said: “We are delighted to announce a final investment decision for this world-class LNG project. FID for this innovative, cross-border project has been agreed on schedule and the speed with which we achieved project sanction is testament to both the strength of the partnership among Kosmos, BP, SMHPM, Petrosen, and the governments and ministries of Mauritania and Senegal, as well as the cost competitive nature of the project. I personally congratulate President Mohamed Ould Abdel Aziz and President Macky Sall, as well as their respective Ministers, ministries, and national oil companies for collaborating on an agreement that enables their shared gas resources to be developed quickly and efficiently for the benefit of both countries.

“For Kosmos, Greater Tortue Ahmeyim is another example of a world-class discovery being moved to project sanction on an accelerated timeline, ensuring early delivery of cashflow to the project partners and the governments of Mauritania and Senegal. With BP as operator, we have a partner with the experience and expertise to move the project through the development phase to production in the first half of 2022.

“While today we celebrate the excellent progress on Phase 1 of the Greater Tortue Ahmeyim project, we are already looking forward to, and working on, subsequent phases of development to expand liquefaction capacity to approximately 10 million tons per annum. We also believe there is potential for two additional world-class gas hubs in the region – one near the Bir Allah discovery offshore Mauritania and the other near the Yakaar / Teranga discoveries offshore Senegal. Kosmos looks forward to collaborating with its partners, and the governments and ministries of Mauritania and Senegal, to advance this important work.”

The parties will continue to obtain final regulatory and contract approvals, following which Phase 1 of the Greater Tortue Ahmeyim project will move into a detailed design and construction phase, with awarding of engineering, procurement, construction and installation (EPCI) contracts. Project execution activities are expected to begin in the first quarter of 2019.

Source: Kosmos Energy



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