Kosmos gets Achiever extension, dayrate drop

October 1, 2015

Dallas-based Kosmos Energy entered into a deal with Atwood Oceanics that will see the exploration and production company get an extension, and a reduced rate for the Atwood Achiever ultra deepwater rig for operations offshore Northwest Africa.

The Atwood Achiever. From Atwood Oceanics.

Atwood and Kosmos originally entered a three-year deal for the vessel on 12 November 2014, which the extension now gives the contract an end date of 12 November 2018. The adjusted dayrate will be US$495,500, net of taxes, compared to $595,000 a day, and $660,000 gross, inclusive of taxes.

According to Atwood, the deal comes with an option for Kosmos, which may be exercised at any time through 1 October 2016, to revert the contract to the original operating day rate and original end date. Exercising this option will result in a payment that includes the difference in day rates, taxes, and an administrative fee covering the time periods for which the reduced day rate was invoiced.

"Following our recent basin-opening discovery offshore Mauritania, the extension of the Atwood Achiever contract will enable us to continue executing our active exploration and appraisal program in the Atlantic Margin. We enjoy an excellent relationship with Atwood Oceanics, and the Achiever continues to deliver safe and reliable drilling performance for Kosmos Energy," Andrew G. Inglis, Kosmos chairman and CEO said.

The Atwood Achiever is currently working offshore Mauritania at Kosmos’ second well, the Marsouin-1, which was spud on 28 August. Results from the well are expected in 4Q 2015.

Marsouin-1 is located in Block C8, approximately 60km north of the basin-opening Tortue-1 well in a water depth of approximately 2400m. The well is designed to test a four-way trap with multiple stacked targets, including Lower Cenomanian, Albian, and Aptian formations.

Kosmos is the operator of the well with 60% interest. Partners include Chevron (30%), and SociétéMauritanienne Des Hydrocarbures et de Patrimoine Minier (SMHPM) (10%).

In April, Kosmos made a discovery at the Tortue-1 well offshore Mauritania, encountering 107m (351ft) of net pay in the Cenomanian, which was the well’s primary objective. Tortue-1 also intersected an additional 10m (32ft) of gas in the lower Albian section. An appraisal program is being planned to delineate the Ahmeyim discovery, previously referred to as Tortue, Kosmos said.

“Our Tortue-1 gas discovery offshore Mauritania is the industry’s largest offshore find so far this year,” Inglis said in the company’s 2Q 2015 report.

Kosmos estimated that the Tortue prospect contains 2.1 billion boe.

In March, Kosmos plugged and abandoned its CB-1 well in the Cap Boujdour permit area offshore Morocco after gas and condensate found was not in commercial quantities.

Read more:

Kosmos hails Mauritania play-opener

Kosmos makes Morocco play-opener



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