Kosmos Energy
| Company type | Public |
|---|---|
| Industry | Oil and gas exploration and production |
| Founded | 2003 |
| Founder | James C. Musselman, Brian F. Maxted, W. Greg Dunlevy, Paul Dailly |
| Headquarters | Dallas , United States |
Area served | Ghana, Equatorial Guinea, Gulf of Mexico, Mauritania, Senegal, Namibia, São Tomé and Príncipe, Suriname |
| Products | Oil, natural gas |
| Website | www |
Kosmos Energy is a U.S.-based upstream oil enterprise headquartered in Dallas, Texas. Although it was originally incorporated in Bermuda, the company later re-registered in Delaware. Kosmos manages production and development operations offshore in Ghana, Equatorial Guinea, and the Gulf of Mexico. Its development initiatives extend offshore Mauritania and Senegal, while exploration licenses cover regions offshore Namibia, São Tomé and Príncipe, and Suriname. Previously, the firm conducted exploration activities offshore Morocco and Western Sahara. Notably, Kosmos identified the Jubilee oil field near Ghana and the cross-border Tortue gas field located offshore Mauritania and Senegal. The company gained media attention through the documentary Big Men, which chronicled its efforts to develop the Jubilee field.
History
Established in 2003 by James C. Musselman, Brian F. Maxted, W. Greg Dunlevy, and Paul Dailly, Kosmos Energy received initial capital from private equity investors including Warburg Pincus and The Blackstone Group. The firm was first incorporated in Bermuda.
In June 2007, Kosmos achieved a significant oil find with the Jubilee Oil Field situated offshore Ghana. Production commenced in 2010. This milestone was documented in Rachel Boynton's 2013 documentary Big Men, which was subsequently adapted by the BBC.
Kosmos made its public market debut on the New York Stock Exchange under the ticker KOS on May 10, 2011, successfully raising more capital than anticipated by issuing 33 million shares at $18 apiece. Later, on August 21, 2017, it gained a listing on the London Stock Exchange.
In June 2012, Kosmos entered into a partnership with Chevron, granting Chevron Global Energy Inc. a 50% working interest in Blocks 45 and 42 offshore Suriname to improve operational efficiency. Subsequently, in May 2016, Hess Corporation acquired a 33% non-operated stake in Block 42 from both Kosmos and Chevron.
In 2014, Kosmos began drilling operations off Cape Bojador near the contested Western Sahara region. Former UN legal advisor Hans Corell stated that these activities contravened a UN Security Council legal opinion; however, Kosmos maintained that its conduct complied with international law and emphasized its cooperation with ongoing UN mediation efforts. The company also asserted that local communities would experience economic benefits from resource development. A Kosmos spokesperson underscored their collaboration with Morocco as the de facto administrative authority to ensure equitable benefit sharing.
In 2016, Norway’s Government Pension Fund Ethics Council recommended excluding Kosmos due to its involvement in Western Sahara. Kosmos challenged this recommendation by highlighting extensive engagement with local stakeholders supporting economic opportunities derived from foreign investment. In February 2018, after 17 years of activity, Kosmos exited Morocco and Western Sahara.
Key gas discoveries were made by Kosmos offshore Mauritania in 2015 at Tortue-1 (Block C-8) and Marsouin-1 (later renamed Bir Allah). In January 2016, gas was also found offshore Senegal at Guembeul-1 near Tortue-1.
Additional gas finds occurred during 2016–17, including Teranga-1 offshore Senegal. In December 2016, Kosmos formed a partnership with BP in Mauritania and Senegal; BP acquired a majority working interest including operatorship of Mauritania blocks along with a significant stake in Senegal blocks. In May 2017, BP and Kosmos announced a major discovery at Yakaar-1 offshore Senegal.
In February 2018, Senegal and Mauritania agreed to jointly manage shared gas resources developed by Kosmos and BP. By December of that year, BP and Kosmos reached a final investment decision for the Tortue LNG project’s initial phase.
Kosmos broadened its footprint into the Gulf of Mexico in August 2018 through acquiring Deep Gulf Energy for $1.23 billion. Later that year in December, the company reincorporated in Delaware after having been incorporated previously in Bermuda.
Operations
By 2021, Kosmos Energy was actively producing oil and gas in the Gulf of Mexico, Ghana, and Equatorial Guinea, while holding exploration rights offshore São Tomé and Príncipe. In December 2016, BP joined forces with Kosmos, taking on the operator role for its exploration blocks in Senegal and Mauritania, which include the Greater Tortue Ahmeyim (GTA) liquefied natural gas initiative. Kosmos previously operated in Morocco and Western Sahara but has since withdrawn from those areas.
Ghana
The Jubilee Oil Field, discovered by Kosmos in 2007, is estimated to contain up to 1 billion barrels of oil alongside 800 billion cubic feet of natural gas. During the development of Jubilee, U.S. Secretary of State Hillary Clinton reportedly provided support to Kosmos and other American oil companies. In addition to Jubilee, Kosmos participates in the TEN (Tweneboa, Enyenra, and Ntomme) project, which commenced production in 2016 approximately 30 nautical miles off Ghana’s coast.
In 2016, Kosmos held a 24.1% ownership in Jubilee and a 17% stake in TEN. Toward the end of 2021, the company expanded its holdings by acquiring an extra 18% interest in Jubilee and 11% in TEN from Occidental Petroleum for $550 million. After Tullow Oil exercised its pre-emption rights, Kosmos' effective stakes adjusted to 38.3% in Jubilee and 19.8% in TEN.
Equatorial Guinea
In October 2017, Kosmos partnered equally with Trident Energy to purchase Hess Corporation’s interests in the Ceiba Field and Okume Complex located offshore Equatorial Guinea. The company also retains exploration stakes in various offshore blocks within this region. In November 2019, Kosmos announced a successful oil discovery at its S-5 well situated offshore Equatorial Guinea.
Gulf of Mexico
Kosmos entered the deepwater Gulf of Mexico sector in August 2018 by acquiring Deep Gulf Energy from First Reserve, a private equity firm, for $1.23 billion—comprising $925 million in cash and $300 million in common stock. This acquisition resulted in a production increase exceeding 50%, raising daily output to around 70,000 barrels of oil equivalent and boosting estimated reserves by 40% to approximately 280 million barrels of oil equivalent.
Mauritania and Senegal
Kosmos holds a 32.51% interest as operator in both the Cayar and St. Louis blocks offshore Senegal. In Mauritania, it controls acreage within the C8 and C12 blocks along the western edge of the Mauritania Salt Basin. The company made a notable gas discovery at Tortue-1 well in Block C-8 during April 2015—part of the Greater Tortue complex—and later identified additional gas at Marsouin-1 (Bir Allah) within northern Block C-8. Appraisal drilling indicates that Tortue West contains about 15 trillion cubic feet (tcf) of gas, while the entire Greater Tortue Complex exceeds 20 tcf.
Kosmos and BP have entered into a farm-out agreement concerning their shared gas discoveries and upcoming exploration activities across Mauritania and Senegal. Under this arrangement, Kosmos concentrates on exploration efforts while BP manages development and production phases. Their joint exploration led to an estimated gross Pmean gas resource of roughly 15 tcf at the Yakaar-1 well offshore Senegal. In late 2018, Kosmos announced reaching a final investment decision for phase one of the Greater Tortue Ahmeyim LNG Project alongside BP.
The GTA field is being developed to extract gas using a floating production storage and offloading (FPSO) vessel that processes gas prior to liquefaction; processed gas is then transported via pipeline to a floating LNG (FLNG) facility positioned along the maritime boundary between Mauritania and Senegal. Phase one is projected to start production in 2023 with an anticipated annual output near 2.5 million tons; a final investment decision for phase two remains outstanding. The GTA initiative aims to supply both global export markets as well as domestic gas consumption needs within both countries.
Kosmos confirmed substantial gas resources at its Yakaar-2 appraisal well offshore Senegal and made another significant gas discovery at Orca-1 offshore Mauritania in October 2019. Current estimates place total recoverable gas offshore Mauritania and Senegal at approximately 100 trillion cubic feet.
Suriname
Kosmos held interests in two exploration license areas in Suriname, owning 50% of Block 45 and 33% of Block 42. In 2018, the company ceased operations on two exploration wells, Anapai-1A (Block 45) and Pontoenoe-1 (Block 42), after unsuccessful hydrocarbon discoveries. In December 2020, Royal Dutch Shell acquired Kosmos Energy’s offshore assets in Suriname.
Morocco and Western Sahara
Kosmos maintained a 55% stake in the Boujdour Maritime block and a 75% stake in the Essaouira block. In October 2013, it transferred a 20% non-operated interest in Boujdour Maritime to Capricorn Exploration & Development Company Ltd, a subsidiary of Cairn Energy. The Boujdour license agreement was established with Morocco’s national oil company ONHYM.
In May 2014, Kosmos plugged and abandoned the FA-1 well located in the Foum Assaka Offshore block; although no hydrocarbons were discovered, the well confirmed the presence of an active petroleum system and supplied seismic calibration data used in their petroleum system analysis. On March 2, 2015, Kosmos announced a minor, noncommercial find at its CB-1 exploration well in Cap Boujdour, which was subsequently plugged and abandoned by February 2018.
Other African countries
Kosmos possessed interests in six offshore blocks within Sao Tome and Principe, including two held jointly with BP. In 2018, Kosmos revealed plans for offshore exploration alongside Royal Dutch Shell, which later acquired five of Kosmos’ blocks in 2020. By 2022, Kosmos continued to hold an interest in Block 5 off Sao Tome.
Together with Galp, Kosmos conducted an extensive 3D seismic survey of the seabed, described by The Wall Street Journal as one of the largest offshore exploration projects in the region. This survey was finalized in August 2017.
Additionally, Kosmos held an offshore license for the Marine XXI block in Congo-Brazzaville, spanning more than 2,300 square kilometers under a production sharing contract with the government and Société Nationale des Pétroles du Congo. This agreement was terminated in February 2020.
In 2018, Kosmos collaborated with Royal Dutch Shell to explore offshore Namibia. By September 2020, Shell had agreed to reduce its stake in Kosmos’ frontier exploration assets within the area.
Corporate affairs
Kosmos Energy is based in Dallas, Texas, and is incorporated under Delaware law. It is publicly traded on both the New York and London stock exchanges under the symbol KOS and employed approximately 380 individuals worldwide as of 2018.
Governance
The company’s operations are overseen by a board of directors. Key executives include Chairman and CEO Andrew G. Inglis, Chief Exploration Officer Tracey Henderson, and Senior Vice President and Chief Financial Officer Thomas P. Chambers.
Other initiatives
Kosmos provided $450,000 to Dallas’s Perot Museum of Nature and Science to establish the Kosmos Energy STEM Teacher Institute and acts as presenting sponsor for the Keir Collection of Islamic Art at the Dallas Museum of Art.
In Ghana, Kosmos founded the Kosmos Innovation Center in 2016 to foster entrepreneurship and promote economic diversification with an emphasis on agriculture. The center’s AgriTech Challenge drew around 400 participants in 2017. The company also partnered with Safe Water Network to enhance access to potable water in Western Ghana.
In Senegal, Kosmos works alongside NGO Le Partenariat on environmental initiatives and launched a start-up accelerator program in 2018 aimed at advancing agriculture, livestock farming, fisheries, and broader economic growth. In Mauritania, it introduced the Mauritania Innovation Challenge (MIC) in 2018 based on its Innovation Center model.
Kosmos contributed equipment valued at over $120,000 to Suriname’s Polytechnic College and Anton de Kom University supporting engineering and mineral production courses. It also collaborated with international security firm Safe Start to develop safety training programs for technical schools in Suriname. Moreover, Kosmos has initiated projects addressing food insecurity and entrepreneurship development in Ghana.
As part of its commitment to transparency under the Extractive Industries Transparency Initiative (EITI), Kosmos began disclosing project-related payments in 2014 and makes public its contracts, petroleum agreements, and U.S. tax contributions as part of its transparency practices.