Kosmos Energy has finalised the sale of its offshore production assets in Equatorial Guinea to Panoro Energy for approximately US$127 million (AU$191 million).
The transaction, which closed on June 16, sees Kosmos transfer its interests in Block G, encompassing the producing Ceiba Field and Okume Complex production assets.
The deal features an earn-out structure, with Kosmos eligible to receive up to an additional US$40 million in future contingent payments. These subsequent financial injections remain subject to specific global oil price thresholds and asset production benchmarks.
Kosmos will use the entire net proceeds of the divestment toward paying down outstanding borrowings under its senior reserves-based lending credit facility, drastically increasing its balance sheet resilience.
In addition, the transaction strips roughly US$140 million in long-term asset retirement obligations, the legal liabilities associated with eventually decommissioning and dismantling the offshore infrastructure, straight off the company’s books.
Kosmos Chairman and CEO Andrew Inglis termed the finalisation a win-win outcome for the company’s operating portfolio.
“For Kosmos, the transaction high grades our portfolio by divesting high unit operating cost production and increases balance sheet resilience, with retained exposure to future upside from the assets,” Inglis said.
“Strategically, it also enables Kosmos to focus our capital and expertise on our world-class assets where we can add the most value for our stakeholders.”
Prior to the sale’s completion, the Block G assets had been contributing a net production volume of roughly 5,800 barrels of oil per day to Kosmos.
The explorer, which retains active extraction operations across Ghana, Mauritania, Senegal, and the Gulf of Mexico, confirmed it will hand down updated full-year 2026 production and financial guidance alongside its second-quarter financial results this coming August.