{"id":10700,"date":"2021-08-09T16:43:37","date_gmt":"2021-08-09T16:43:37","guid":{"rendered":"https:\/\/www.oilnewskenya.com\/?p=10700"},"modified":"2021-08-09T16:43:37","modified_gmt":"2021-08-09T16:43:37","slug":"mauritania-senegal-kosmos-energy-completes-sale-of-greater-tortue-ahmeyim-fpso-lease-back-transaction","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/mauritania-senegal-kosmos-energy-completes-sale-of-greater-tortue-ahmeyim-fpso-lease-back-transaction\/","title":{"rendered":"MAURITANIA\/SENEGAL: Kosmos Energy Completes Sale of Greater Tortue Ahmeyim FPSO & Lease Back Transaction"},"content":{"rendered":"

Kosmos Energy has announced that the transaction for the sale and lease back of the Greater Tortue Ahmeyim (GTA) floating, production, storage, and offloading vessel (FPSO) has been successfully completed.<\/p>\n

Completion of the transaction secures additional funding for Kosmos\u2019 future development costs on the GTA project. Capital expenditures associated with the GTA project in 2021 net to Kosmos were previously estimated to be around\u00a0$350 million. With the completion of the GTA FPSO sale and lease back transaction, Kosmos\u2019 2021 capital expenditures associated with the GTA project have been reduced to approximately\u00a0$190 million, with remaining cash calls on the project for 2021 covered through the proceeds of the sale. The balance of the sale proceeds, as well as the additional savings from the transfer of remaining FPSO construction payments to\u00a0BP Buyer, are expected to be largely realized in 2022.<\/p>\n

The company expects to refinance\u00a0National Oil Company\u00a0loans later this year, providing approximately\u00a0$100 million\u00a0in additional financing for the GTA project.<\/p>\n

FPSO Sale and Purchase Agreement (FPSO SPA) and Lease Agreement<\/i><\/p>\n

BP, as the operator of the GTA project (BP Operator), with the consent of the GTA Unit participants and the respective States, agreed to sell the GTA FPSO (which is currently under construction by Technip Energies in\u00a0China) to an affiliate of BP (BP Buyer). The FPSO will be leased back to\u00a0BP Operator\u00a0under a long-term lease agreement, for exclusive use in the GTA project.<\/p>\n

BP Operator\u00a0will continue to manage and supervise the construction contract with Technip Energies. Delivery of the FPSO to\u00a0BP Buyer\u00a0will occur after construction is complete and the FPSO has entered international waters, with the lease to\u00a0BP Operator\u00a0becoming effective on the same date, currently estimated to be late third quarter of 2022.<\/p>\n

Kosmos will reimburse\u00a0BP Operator\u00a0for its pro rata share of cost under the lease agreement, which will be classified as an operating expense.<\/p>\n

GTA Project Status<\/i><\/p>\n

Key workstreams across the GTA project continue to make good progress year-to-date with the following milestones achieved:<\/p>\n