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

So I think the scheme is sort of clear. In terms of working percentages, we typically have 25% to 33% in our current projects, I’ve envisioned the same. The objective is for Petrosen to step up to an equivalent share to other parties that would come in. if it’s two, it’s maybe we are 25% and they’re at 25%. If it’s just one party coming, maybe we’re at a third, a third, a third. So it’s that sort of shape. And to get there, we’ve got work to do now to bring in the partnership that is a gating item for both ourselves and Petrosen and secure the necessary financing to enable Petrosen to move forward. So lots to do on it, but it is a project which I believe has the full support of the government has a very clear development concept and a very cost competitive proposal.

Now there’s work to do to bring all of that to fruition.

Mark Wilson: Okay. And on that development concept, can we just push a little bit harder on it. So Tortue, for instance, there’s a very large breakwater being built and a lot of the Phase I was sized with a view to a follow-on Phase 2 FLNG being added. Could you explain what’s different in terms of Yakaar Teranga, maybe in terms of its location offshore that might make it an easier or quicker in international phase?

Andrew Inglis: Yes. No, again, good piece of color, Mark. Yes. We — I suppose the way to describe it is we don’t envisage building a break water. We believe that there is a design to enable an FLNG vessel to be located on location there, different metocean conditions so that you don’t have the significant cost of building a breakwater. So I think that it is about being innovative around the demand solution that we’ve talked about, and we believe that we’ve done significant work. We have done significant work to enable us to be able to progress our concept.

Mark Wilson: Okay. That’s great. And sorry, I’ve just got one more. I just want to confirm. So in Jubilee now additional producer-injector pair before year-end, but it’s still a plan for that rig to continue in 2024 with a three to four well annual program, I think that’s been talked about before by the operator.

Andrew Inglis: Yes. No, no, you’re right, Mark, in concept, that’s the proposal. About half a rig year, I would say, on Jubilee in ’24. And again, I think it was Charles’ question around the objective is to build the well capacity so that we’ve got the sort of reserve capacity beyond the facilities limit. And together with reliable water injunction, you then have the ability to sort of hold the plateau at that level. And then clearly, you then follow up with additional wells as that well capacity becomes tested. But so we’re on a good track now to sort of continue to move forward with Jubilee as we add those wells and fundamentally underpin the new wells with reliable water injection. So the increase in Jubilee is well described in terms of the forward activity set.

Operator: [Operator Instructions] Our next question comes from Stella Cridge with Barclays. Please proceed with your question.

Stella Cridge: Hi there. Afternoon all. Many thanks for all the updates. I want to ask on three things, please. The first, just a tidying up question on Yakaar Teranga. Do you actually have to pay any consideration to BP for the additional stick, that would be the first one. The second on the TEN gas development. I did see a figure in the press about potential cost of this. I just wondered if you would be able to comment directly about, what CapEx you see there, and how you would fund the Cosmos share? And then finally, do you have any updates on the Ghana tax situation? That would be three things.