Mauritania: Bullish Kosmos Eyes Second Major Entry; Is It Downplaying The Risks?

US independent Kosmos, having sold an operator’s stake to BP in 2016, is eying the $1bn sell-off of a further 20% in the 50-100tcf of gas it has discovered off Mauritania and Senegal. It claims 15tcf Tortue and follow-up projects as world-beaters on cost and timing. But scratch the surface and risks abound.

Texas-based E&P midcap Kosmos used its capital markets day on 25 February to set out its stall for the sale of a further 20% in the 10mn t/y Tortue FLNG development on the Senegal/Mauritania maritime border as well as in nearby discoveries in both Mauritania and Senegal which Kosmos expects to fuel two further 10mn t/y developments.

Kosmos and operator BP estimate ‘gas initially in place’ (GIIP) across the three hub areas at 50-100tcf of which Kosmos reckons 30-60tcf will prove recoverable. This is split roughly evenly between Mauritania and Senegal, with a bias towards the former as far as the less firm discoveries are concerned. (CONTINUED - 2117 WORDS)