Kosmos Energy Ltd. (NYSE:KOS) Q3 2023 Earnings Call Transcript

It’s actually an issue that’s sort of external to the vessel. The vessel has fair leads on it. The fairly are used in the permanent anchoring of the vessel on location. They have a sea fastening and in the voyage across to the East Coast of Africa. Those sea fastenings castings were damaged. The boats are currently sitting offshore at Durbin at the moment, and we’re looking to get access to the port in Durbin so that work to address the issue with the fair leads can be conducted. So that’s the thing where there’s a little bit of sort of uncertainty in the timing. So not a big issue, but it’s sort of — it is a very singular issue that we’re working. All that said is there’s work ongoing on the FPSO itself and all the top side, so we can get on with work to do with the pre-commissioning.

So when it does arrive on site, that work stream is shortened. So look, like with all big projects, it is about the integration of the pieces we’re clearly getting close, and I actually felt good about the progress we made in 3Q. And we’ve got significant milestones now to hit in the remainder of this quarter and into the first quarter of next year. And the one that we’re obviously intensely focus on with the operator is to make sure that we get the FPSO on location so that we can deliver first gas. So that’s the color as we’re behind the update.

Operator: Our next question is from Mark Wilson with Jefferies. Please proceed with your question

Mark Wilson: Okay. Thanks, gents. And thanks for the color on the FPSO there. I was going to ask about that. So that’s clear. So, yeah, let’s go to Yakar Taranga. You’ve actually outlined a very specific development concept in the press release today, 550 million cubic feet a day with piped gas, domestic and export via FLNG. And I think, Andy, you mentioned an FLNG vessel of a similar size to Tortue, that’s what I want to check is what would be the split of that gas? How much does Senegal required domestically and therefore, how much would be left to export. And you mentioned bringing in a partner. So I guess that is a definitive requirement to move forward? And what sort of final percentage stake would you envisage taking in such a development?

Andrew Inglis: Okay. Yes, right. Good questions, Mark. Yes. So I think sort of covered it earlier, but just sort of I think that it is a well-described development scheme. I think I hope you get a sense from that, that we’ve been — obviously been working closely with Petrosen in the development of that and a scheme that clearly is competitive, commercially attractive, but meets the country’s own development goals, which were around the domestic gas supply, and the ability then to create additional revenue through LNG export. If you look at the split, it’s around 130 million standard cubic feet a day into the domestic gas, I think with that, initially, probably there won’t be the full power capacity to take that, but that will grow through time.

The — and again, a steady state, we would be looking at an LNG scheme, which is about 2.5 million to three million tonnes, yes, which sort of takes you to a gas supply of 400 million to 500 million standard cubic feet, yes. So that gives you an idea of the scheme and therefore, the number of wells that will be required, the well potential is very similar to GTA. And I think in sort of the efforts sort of linking back to the question, the sort of why is deeply not involved. This is a scheme that we developed in collaboration with Petrosen. And then ultimately, the decision by BP not to participate has allowed us to move forward with that. So as they step back, they’re going to focus on getting Phase 1 of GTA finished. And that creates the opportunity to work this.