Kosmos to Buy into Senegal Offshore Blocks for $400 mln

 

Kosmos Energy is set to sign a $400 million "farm-in" agreement with Senegal's state-owned hydrocarbon firm Petrosen and Timis Corp to take a 60 percent stake in the Cayar and St. Louis offshore blocks that they operate, a draft Petrosen document seen by Reuters on Saturday showed.

According to the document, Kosmos has committed to drill two exploration wells up to a total value of $240 million. It will then drill a third well, or alternatively a first appraisal well, to a value of another $120 million.

Under the terms of the agreement, Kosmos will have a 60 percent stake in the blocks, Timis Corp 30 percent, and Petrosen 10 percent, the draft document said.

"We believe that the blocks show a very substantial potential and all parties look forward to working together to advance the development of the areas to their maximum potential," Petrosen Director General Mamadou Faye said in the document.

Kosmos has also committed as the new operator to undertake a 3D seismic survey of approximately 7,000 sq km over the two blocks. The seismic survey is expected to start immediately and to take approximately four months.

The New York-listed firm is already present in the region as a shareholder in Ghana's Jubilee oil field and TEN project.

Timis Corp is controlled by Romanian billionaire Frank Timis, who has invested in various sectors in the West Africa region, including iron ore mining in Sierra Leone and manganese exploration in Burkina Faso.

(Reporting by Diadie Ba; Writing by Bate Felix; Editing by Kevin Liffey)