Oil and gas company Kosmos expects to spend approximately $700 million in capital expenditures in 2022.
The company will spend around $400 million of the budget in relation to its base business in Ghana, Equatorial Guinea, and Gulf of Mexico.
Around $300 million is set to be spent in relation to its assets in Mauritania and Senegal, mainly the Tortue Ahmeyim project.
The base business capex includes approximately $250-$300 million of maintenance capital expenditures for development drilling, as well as integrity management. In addition, Kosmos expects to spend approximately $100-$150 million of growth capital expenditures to fund pre-investment for infrastructure supporting growth in the base business in 2023 and beyond (i.e. Jubilee Southeast and Winterfell).
In Mauritania and Senegal, Kosmos expects to spend approximately $250 million on Tortue Phase 1, with an incremental $50 million on increased activity on Tortue Phase 2 and the BirAllah and Yakaar-Teranga hubs to advance the commercialization of our substantial gas resources.
Kosmos' total net production in the fourth quarter of 2021 averaged approximately 70,000 boepd. Fourth-quarter net production numbers include pro forma impact from the Oxy Ghana acquisition assuming October 1, 2021 effective date.
Oxy in October 2021 agreed to sell its interests in two Ghana offshore fields for $750 million to Kosmos Energy and Ghana National Petroleum Corp. The deal includes Occidental's interests in both the Jubilee and TEN fields, which together had net production of 22,000 barrels of oil equivalent per day for the second-quarter of 2021.
In November 2021, Tullow Oil and PetroSA exercised their pre-emption rights for a portion of Oxy's stake in the offshore fields. Completion of the pre-emption transactions remains subject to finalizing definitive agreements and securing approval from the Government of Ghana.
"If Ghana pre-emption is completed, we would expect capital expenditures to reduce by up to $40 million," Kosmos said Monday.
Kosmos' Production in Ghana averaged approximately 39,400 barrels of oil per day (bopd) net in the fourth quarter of 2021. Kosmos lifted five cargos from Ghana during the quarter, one more than planned due to a late-December Jubilee lifting.
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