Kosmos Energy splashes US$550mln on enlarging Ghana oilfield stakes

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Kosmos Energy Ltd (LSE:KOS, NYSE:KOS) has struck a US$550mln deal in Ghana that it expects to quickly recoup in coming years.


The oil and gas production company announced it has acquired an additional 18.0% interest in the Jubilee field and an additional 11.0% interest in the Ten fields in Ghana from Occidental Petroleum, where the operator is Tullow Petroleum.


Based on an oil price of US$65 a barrel of Brent (the current price is much higher), chairman and chief executive Andrew G. Inglis said, “We expect the additional Ghana interests to generate around $1bn of incremental free cash flow by the end of 2026.”


He added that the transaction is “highly accretive across all key metrics” and accelerates the company’s path to deleveraging the balance sheet.

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