Kosmos Completes Sale of Equatorial Guinea Block G Interest for $127 Million

en.Wedoany.com Reported - International oil company Kosmos Energy has completed the sale of its offshore production assets in Equatorial Guinea to independent company Panoro Energy, a move aimed at optimizing its portfolio and strengthening its balance sheet. This transaction allows Kosmos to focus more on high-return core assets in West Africa and the Gulf of Mexico.

Under the terms of the transaction, Kosmos transferred its 40.375% non-operated interest in Block G to Panoro. The block contains the producing Ceiba field and Okume Complex, making Panoro the largest shareholder in the block. While exiting Block G, Kosmos retains exploration exposure in Equatorial Guinea through its interests in Blocks EG-01 and EG-24.

Andrew Inglis, Chairman and CEO of Kosmos Energy, stated in a release that the transaction optimizes the portfolio by divesting production assets with high unit operating costs, enhancing balance sheet resilience while retaining exposure to the future upside potential of these assets.

After customary closing adjustments, the final cash consideration totaled $127 million, lower than the initially announced $180 million prepayment, due to cash flows generated by these assets in the first half of 2026 before the transaction closed.

This divestiture comes as Kosmos continues its broader efforts to improve liquidity and reduce leverage, following years of significant investment in major projects, including the Greater Tortue Ahmeyim LNG development offshore Mauritania and Senegal. Throughout 2026, the company also undertook debt management initiatives and portfolio optimization measures.

For Panoro, this acquisition strengthens its position in Equatorial Guinea. Its stake in Block G has increased from 14.25% to 54.625%, enhancing exposure to this mature but still cash-generative offshore asset. Panoro expects to take its first crude oil cargo post-acquisition in early July, totaling 546,000 barrels.

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