Oslo-listed oil and gas company Panoro Energy has agreed to acquire an additional 40.375% non-operated interest in Block G offshore Equatorial Guinea from Kosmos Energy for an initial cash consideration of $180 million, and additional contingent payments of up to $39.5 million.
The transaction, valued up to $219.5 million, will lift Panoro’s interest in Block G to 54.625% from 14.25%, making it the largest partner in the license, which contains the producing Ceiba field and Okume Complex.
The deal has an effective date of January 1, 2025, and is expected to close in the third quarter of 2026.
The consideration comprises $180 million in upfront cash, subject to customary adjustments, and up to $39.5 million in deferred contingent payments tied to production and oil price thresholds between 2027 and 2029.
Panoro said the acquisition would put it on a path to reach group net production of 20,000 barrels of oil per day (bopd) in 2027. The stake being acquired generated 8,271 bopd of working interest production in 2025 and adds net 2P reserves of 46 million barrels of oil (MMbbls) and 2C resources of 29 MMbbls, based on reserve estimates as of December 31, 2024.
The enlarged stake is expected to increase both the frequency and size of Panoro’s crude oil liftings and enhance its ability to influence future production growth and work programs within the joint venture.
Block G is operated by Trident Energy, which holds a 40.375% interest, while GEPetrol holds a 5% revenue interest. The asset has produced more than 490 million barrels gross since first oil in 2000 and has a license running to the end of 2040.
“Today marks a defining milestone in Panoro’s high value growth journey. The acquisition of an additional 40.375% interest in Block G is both transformational and fully aligned with the disciplined and accretive growth strategy that has guided Panoro over many years. Our deep understanding of the producing Ceiba field and Okume complex gives us strong confidence in the assets’ long-term potential and ability to continue generating material cash flow to enhance total shareholder returns.
“The scale and strategic fit of this acquisition, making Panoro the largest partner in Block G, are clear. It more than doubles Panoro’s reserves base, substantially increases production, and will enhance the frequency and size of our crude liftings, driving meaningful long-term cash flow expansion,” said Julien Balkany, Executive Chairman of Panoro.
The deal remains subject to customary competition clearance by the Central African Economic and Monetary Community (CEMAC).