Oil and gas firm Kosmos Energy on Monday said that Neal D. Shah would become the company’s Senior Vice President and Chief Financial Officer effective May 11, 2020.
The management change comes following Kosmos Energy's announcement back in February that Thomas P. Chambers would retire as the chief financial officer, a post he has held since November 2014.
Neal D. Shah moves to the CEO position from his senior vice president and deputy chief financial officer post.
Shah’s annual base salary remains unchanged at $460,000 and his target annual bonus opportunity remains unchanged at 75% of his annual base salary. Shah will also continue to be eligible to participate in the Kosmos Energy Ltd. Long Term Incentive Plan.
Chambers will continue to serve as Senior Advisor to the Chairman and CEO through the end of this year, when he is expected to retire, working on strategic projects in response to the longer-term impact of the COVID-19 pandemic, Kosmos said.
Kosmos on Monday posted a net loss of $183 million for the first quarter of 2020, impacted by non-cash asset impairments and restructuring charges of $169 million. Total net production in the first quarter of 2020 averaged approximately 66,300 boepd, at the upper end of guidance.
Kosmos has booked asset impairments in the first quarter totaling $151 million. These impairments are largely related to the Kodiak and Tornado fields in the Gulf of Mexico and are due to the change in the oil prices since Kosmos acquired the assets in late 2018, the company explained.
Also, in response to current market volatility, Kosmos said it had has identified capital reductions in the base business of around 40% from discretionary expenditure largely from exploration activities in the Gulf of Mexico, its basin-opening exploration portfolio, and other non-critical work that does not impact safety and asset integrity.
"The company is now targeting base business capital expenditure of $200-$225 million in 2020, while keeping 2020 production within the range of previous guidance and with minimal expected impact on 2021 production," Kosmos said Monday.
"Kosmos has taken steps with the operators of our producing assets to target a reduction in operating expenses of approximately $2-3 per barrel in 2020. In addition, Kosmos is reducing cash general and administrative (G&A) costs in 2020 by approximately 40%, through a reduction in headcount, no planned employee cash bonuses and other identified reductions. These capital, operating, and G&A cost reductions lower the company’s costs for 2020 by approximately $250 million, or 30% in total," Kosmos said.