Kosmos Energy has announced that it has signed an agreement with Galp Energia, a subsidiary of SGPS S.A., to farm out 20% non-operated stake of its interest in Blocks 5, 11, and 12, offshore Sao Tome and Principe, Offshore Magazine reported. According to the terms of the agreement, Galp will pay a proportionate share of Kosmos’ past costs in the form of a partial carry on the 3D seismic survey expected to begin in early 2017, with the deal expected to close before the end of 2017, after the approval of the government and fulfilling customary closing conditions, according to Ecofin Agency.
In block 5, Kosmos will hold a 45% interest, Galp and Equator will hold 20% each while ANP will hold the remaining 15%. Additionally, Kosmos holds 65% interest in Block 11, leaving Galp and ANP to hold 20% and 15% interests respectively. While in block 12, Kosmos will hold a 45% stake, Galp, Equator, and ANP will hold a 20, 22.5, and 12.5% interests respectively. Kosmos will remain as operator of all concerned blocks.
Kosmos Energy, a US oil and gas company, joined forces with Oando Energy’s subsidiary, Equator Exploration, to secure ownership of Blocks 5 and 12 in the Gulf of Guinea in April 2016 while Block 11 rights were transferred to Kosmos by ERHC Energy, in October 2015.