Kosmos sells interest in Equatorial Guinea offshore assets to Panoro

(Alliance News) - Kosmos Energy Ltd on Wednesday said it will sell its non-operating interests in offshore production assets in Equatorial Guinea to Panoro Energy in a move meant to reduce outstanding debt by monetising non-core assets.

The Dallas, Texas-based energy company will cede the subsidiary that owns just over 40% of the overall interest in block G, home of the Celima and Okume Complex fields, to the Norwegian energy company for an upfront cash payment of USD180 million.

Additionally, the agreement includes a contingent payment of USD12.5 million linked to production performance at the Ceiba field, located in the same area, and a further USD9 million a year until 2029 subject to oil prices and production thresholds for a total of USD39.5 million.

Kosmos shares were up 7.9% to 170.00 pence each on Wednesday morning in London.

The transaction, Kosmos said, "enhances liquidity from monetizing non-core assets and accelerates debt reduction. Proceeds will be used to reduce borrowings outstanding under the reserves-based lending credit facility".

The sale has an effective date of January 1, 2025, and it is expected to close in mid-2026 pending the approval of the Central African Economic and Monetary Community following the okay already granted by the country's government.

According to Kosmos, the transaction will allow the company to save about USD100 million across capital expenditures and general expenses in the two years following the sale. The company is yet to report its full-year results for 2025, but reported in November it exited the third quarter of last year with approximately USD2.95 billion of net debt, and USD540 million of liquidity.

Panoro Energy primarily financed the operation by announcing today it raised NOK467 million, or about USD48.6 million, in a private placement of about 20 million shares.

Kosmos Energy's Chair Andrew Inglis said: "This transaction reflects our continued focus on capital discipline and balance sheet resilience. The high-grading of the portfolio by accelerating the monetization of later-life, non-operated production assets enables Kosmos to focus our capital and expertise on our world-class assets where we can add the most value for our stakeholders over the long-term."

By Martin Miraglia, Alliance News reporter

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