Kosmos Energy Announces First LNG at the Greater Tortue Ahmeyim Project in Mauritania and Senegal

Rhea-AI Summary

Kosmos Energy (NYSE/LSE: KOS) has achieved first liquified natural gas (LNG) production at the bp-operated Greater Tortue Ahmeyim (GTA) LNG project, located offshore Mauritania & Senegal. The milestone was reached on December 31, 2024, when gas began flowing from wells to the floating production storage and offloading (FPSO) vessel.

The gas undergoes processing at the FPSO to remove condensate, water, and impurities before being delivered to the floating LNG vessel for liquefaction. With liquefaction now commenced, Kosmos will begin recognizing gas entitlement production in its quarterly statements. BP has requested an LNG carrier to arrive this quarter for the first cargo export, marking when Kosmos will start recognizing revenue and generating cash flow from the project.

Positive

• First LNG production achieved at GTA project
• Gas processing and liquefaction operations successfully commenced
• First revenue and cash flow generation expected in Q1 2024 with initial cargo lifting

Negative

• None.

Insights

Energy Industry Analyst

The achievement of first LNG production at the Greater Tortue Ahmeyim (GTA) project represents a transformational moment for Kosmos Energy, marking its evolution from an exploration-focused company to an established LNG producer. The successful commissioning process, involving both the FPSO and floating LNG vessel, demonstrates strong operational execution in a complex offshore environment.

The project's timing is particularly strategic given the current global LNG market dynamics. With Europe's continued demand for diversified gas supplies and Asia's growing energy needs, GTA's production will enter the market at an opportune moment. The project's location on the maritime border of Mauritania and Senegal provides advantageous access to both European and Asian markets.

From a financial perspective, this milestone triggers two critical revenue recognition points: First, when liquefaction begins (enabling production reporting in quarterly statements) and second, when the first cargo is lifted (initiating revenue and cash flow generation). The imminent first cargo lifting, scheduled for Q1 2025, will mark Kosmos's formal entry into the global LNG market as a producer.

The successful development of GTA also carries broader implications for West African energy development. As the region's first cross-border offshore LNG project, it establishes a precedent for future developments and demonstrates the viability of complex, multi-jurisdictional energy projects in West Africa. This success could accelerate investment in similar regional projects, potentially transforming West Africa into a significant LNG export hub.

DALLAS--(BUSINESS WIRE)-- Kosmos Energy (NYSE/LSE: KOS) today announces that first liquified natural gas (LNG) production has been achieved at the bp-operated Greater Tortue Ahmeyim (GTA) LNG project, offshore Mauritania & Senegal.

On December 31, 2024, gas from the first phase of GTA started to flow from wells to the floating production storage and offloading (FPSO) vessel as part of the commissioning process. At the FPSO, gas is being processed to remove any condensate, water and impurities ahead of delivery to the floating LNG vessel for liquefaction.

Gas has now been delivered to the floating LNG vessel and liquefaction has commenced. The liquefaction of gas into LNG is when Kosmos starts to recognize gas entitlement production from the project in its quarterly statements. In addition, bp has given notice to the offtaker (bp gas marketing ltd.) for an LNG carrier to arrive later this quarter to export the first LNG cargo. Lifting of the first LNG cargo is when Kosmos starts to recognize revenue and generate cash flow from the project.

Commenting on first LNG production at GTA, Chairman and Chief Executive Officer Andrew G. Inglis said: “First LNG is another major milestone for Kosmos, the GTA partnership and the governments of Mauritania and Senegal. We are looking forward to the accelerated ramp-up of LNG production and the first LNG cargo lifting during the first quarter.”

About Kosmos Energy

Kosmos Energy is a leading deepwater exploration and production company focused on meeting the world’s growing demand for energy. We have diversified oil and gas production from key assets offshore Ghana, Equatorial Guinea, Mauritania, Senegal and the U.S. Gulf of Mexico. Additionally, in the proven basins where we operate we are advancing high-quality development opportunities, which have come from our exploration success. Kosmos is listed on the New York Stock Exchange and London Stock Exchange and is traded under the ticker symbol KOS. As an ethical and transparent company, Kosmos is committed to doing things the right way. The Company’s Business Principles articulate our commitment to transparency, ethics, human rights, safety and the environment. Read more about this commitment in the Kosmos Sustainability Report. For additional information, visit www.kosmosenergy.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Kosmos expects, believes or anticipates will or may occur in the future are forward-looking statements. Kosmos’ estimates and forward-looking statements are mainly based on its current expectations and estimates of future events and trends, which affect or may affect its businesses and operations. Although Kosmos believes that these estimates and forward-looking statements are based upon reasonable assumptions, they are subject to several risks and uncertainties and are made in light of information currently available to Kosmos. When used in this press release, the words “anticipate,” “believe,” “intend,” “expect,” “plan,” “will” or other similar words are intended to identify forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Kosmos, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. Further information on such assumptions, risks and uncertainties is available in Kosmos’ Securities and Exchange Commission (“SEC”) filings. Kosmos undertakes no obligation and does not intend to update or correct these forward-looking statements to reflect events or circumstances occurring after the date of this press release, except as required by applicable law. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement. Management does not provide a reconciliation for forward looking non GAAP financial measures where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the occurrence and the financial impact of various items that have not yet occurred, are out of our control or cannot be reasonably predicted. For the same reasons, management is unable to address the probable significance of the unavailable information. Forward looking non GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250209720700/en/

Investor Relations

Jamie Buckland

+44 (0) 203 954 2831

jbuckland@kosmosenergy.com

Media Relations

Thomas Golembeski

+1-214-445-9674

tgolembeski@kosmosenergy.com

Source: Kosmos Energy

FAQ

When did Kosmos Energy (KOS) achieve first LNG production at the Greater Tortue Ahmeyim project?

Kosmos Energy achieved first LNG production at the Greater Tortue Ahmeyim project on December 31, 2024, when gas began flowing from wells to the FPSO vessel.

When will Kosmos Energy (KOS) start recognizing revenue from the GTA project?

Kosmos Energy will start recognizing revenue and generating cash flow when the first LNG cargo is lifted, which is expected during the first quarter of 2024.

How does the GTA project process gas for LNG production?

The gas flows from wells to the FPSO vessel where it's processed to remove condensate, water, and impurities before being delivered to the floating LNG vessel for liquefaction.

When will Kosmos Energy (KOS) begin recognizing gas entitlement production from GTA?

Kosmos begins recognizing gas entitlement production in its quarterly statements once the liquefaction of gas into LNG commences, which has now been achieved.