BP is to inject almost $1b into a gas field off the coast of west Africa as the industry continues to battle low energy prices. The oil giant said it has struck an agreement with Kosmos Energy to explore the Tortue field off the coasts of Mauritania and Senegal, The Courier reported.
The agreement with exploration company Kosmos Energy calls for BP to pay more than $900m to help test the viability of the Tortue prospect. The field is estimated to hold as much as 50Tcf of natural gas, informed Market Watch. The deal also makes BP the operator of the project, giving the British oil giant another potential growth opportunity in its portfolio as low energy prices and cost-cutting have reduced the number of new drilling frontiers.
BP’s Group CEO, Bob Dudley, said: “We believe our expertise in integrating the gas value chain, together with a talented exploration partner in Kosmos, along with the support of the Mauritanian and Senegalese governments, brings together all the elements needed to create a new liquefied natural gas hub in Africa.”