Kosmos Energy Announces Fourth Quarter and Full Year 2021 Results


  • Completed the acquisition of additional interests in the Jubilee and TEN fields in Ghana for ~$550 million (~$460 million after post-closing adjustments)
  • Net Production(2)(3): ~70,000 barrels of oil equivalent per day (boepd) with sales of 81,900 boepd, resulting in a net underlift position of approximately 0.3 million barrels of oil (including impact of Ghana acquisition as of October 1, 2021)
  • Revenues: $573 million, or $76.02 per boe (excluding the impact of derivative cash settlements)
  • Production expense: $134 million, or $17.81 per boe
  • General and administrative expenses: $25 million, $17 million cash expense and $8 million non-cash
  • Capital expenditures (excluding acquisitions):
    • $104 million base business
    • $2 million Mauritania and Senegal
  • Generated free cash flow(1) of approximately $136 million
  • Ended the quarter with record 1P reserves of approximately 300mmboe and record 2P reserves of approximately 580mmboe

Commenting on the Company’s 2021 performance, Chairman and Chief Executive Officer Andrew G. Inglis said: “In 2021, Kosmos rebuilt operational momentum across the portfolio and improved the balance sheet, finishing the year with a strong fourth quarter.

“Today, Kosmos has a differentiated portfolio that is fit for the future with high-quality, low-cost oil assets funding our growth in natural gas and LNG. Our record 2P reserves are balanced between oil and gas with a reserve life of over 20 years.

“With our existing assets and sanctioned projects, production is expected to grow around 50% in the next two years, and we plan to do that while further de-leveraging the balance sheet. As we deliver on this plan and new projects start up, sustainable free cash flow is expected to increase materially, creating the potential for meaningful shareholder returns.

“Our goal is to develop our portfolio in a responsible way, helping our host nations in Africa to expand access to affordable and reliable energy.”


In October 2021, Kosmos successfully completed the acquisition of additional interests in the Jubilee and TEN fields in Ghana from Occidental Petroleum (“Oxy”) for approximately $550 million (~$460 million after post-closing adjustments). The company raised approximately $540 million through an equity and bond offering in October 2021 to fund the transaction. In November 2021, Tullow Oil and PetroSA exercised their pre-emption rights. Completion of the pre-emption transactions remains subject to finalizing definitive agreements and securing approval from the Government of Ghana.

Net capital expenditure for the fourth quarter of 2021, excluding acquisitions, was approximately $106 million, slightly below Company guidance.

Kosmos exited the fourth quarter of 2021 with $2.5 billion of net debt(1) and available liquidity of approximately $0.8 billion. While net debt increased in the quarter, primarily driven by the financing of the Oxy Ghana transaction, leverage improved materially to exit 2021 at around 2.5x.



Total net production(2)(3) in the fourth quarter of 2021 averaged approximately 70,000 boepd.


Production in Ghana averaged approximately 39,400 barrels of oil per day (bopd) net in the fourth quarter of 2021. Kosmos lifted five cargos from Ghana during the quarter, one more than planned due to a late-December Jubilee lifting.

At Jubilee, production averaged approximately 80,400 bopd gross during the quarter. At TEN, production averaged approximately 27,200 bopd gross for the fourth quarter.

The Jubilee water injector well (J55-W) came online around the end of the third quarter and the second Jubilee producer well (J57-P) came online late in the fourth quarter, increasing Jubilee production to above 90,000 bopd gross. At TEN, a gas injector well came online early in the fourth quarter to add pressure support to the Ntomme field.

High reliability of the Ghana production facilities continues, with uptime of the Jubilee and TEN FPSOs averaging around 98% in the fourth quarter as well as high levels of water injection and gas offtake from the Government of Ghana. This performance has continued into 2022 with record levels of water injection seen at Jubilee (>235,000 barrels of water per day) helping to optimize reservoir performance.

Infill drilling is expected to continue in 2022 with a full year of activity underpinning planned production growth in 2022 and 2023.

Equatorial Guinea

Production in Equatorial Guinea averaged approximately 30,400 bopd gross and 9,800 bopd net in the fourth quarter of 2021. As forecast, Kosmos lifted 1.5 cargos from Equatorial Guinea during the quarter.

Two of three planned infill wells in the Okume Complex began producing in the fourth quarter of 2021. These wells were the first new wells since 2015 and have added approximately 2,500 bopd gross of additional production to the field in the fourth quarter, supporting an increase in gross production to around 35,000 bopd in early January. The third planned well has been deferred, as the rig was utilized to plug and abandon an existing well in Equatorial Guinea and was required to mobilize for its next contract before it could complete the drilling of the last well.

Mauritania & Senegal

The Greater Tortue Ahmeyim liquified natural gas (LNG) project has made steady progress in 2021 and was approximately 70% complete at year-end with the following milestones achieved in the quarter and post-quarter-end.

  • FPSO: All eight process modules have been lifted onto the deck and mechanical completion of the process sub-systems is underway
  • Breakwater: Construction completed of the 21st (and final) caisson of the breakwater
  • Subsea: Pipe laying vessel completed its nautical trials in preparation for the offshore installation campaign in the second quarter of 2022
  • FLNG: All four mixed refrigerant compressors lifted onboard and pipe rack installation operations commenced


At year-end 2021, Kosmos had 1P reserves of approximately 300 million barrels of oil equivalent, more than double the reserves at the end of 2020 reflecting robust reserves replacement from existing assets, recognition of Tortue 1P reserves and additional reserves from the acquired Ghana interests. 1P organic reserves replacement ratio was approximately 102%, and around 900% with the addition of Tortue Phase 1 and the acquired Ghana interests.

2P reserves as of year-end 2021 are approximately 580 million barrels, representing a 2P reserves-to-production life of over 20 years. 2P organic reserves replacement ratio was approximately 114%, and around 600% with the addition of the acquired Ghana interests. Kosmos’ year-end reserves have been independently evaluated by Ryder Scott.

2022 Capital Expenditure Budget

Kosmos expects to spend approximately $700 million in capital expenditures in 2022. Around $400 million of the budget is related to the base business (Ghana, Equatorial Guinea and Gulf of Mexico assets) with around $300 million related to our assets in Mauritania and Senegal. The base business capex includes approximately $250-$300 million of maintenance capital expenditures for development drilling, as well as integrity management. In addition, we expect to spend approximately $100-$150 million of growth capital expenditures to fund pre-investment for infrastructure supporting growth in the base business in 2023 and beyond (i.e. Jubilee Southeast and Winterfell). In Mauritania and Senegal, we expect to spend approximately $250 million on Tortue Phase 1, with an incremental $50 million on increased activity on Tortue Phase 2 and the BirAllah and Yakaar-Teranga hubs to advance the commercialization of our substantial gas resources. If Ghana pre-emption is completed, we would expect capital expenditures to reduce by up to $40 million.

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