Kosmos Energy has completed the sale of its non-operating working interest in production assets offshore Equatorial Guinea to UK-headquartered independent E&P company Panoro Energy, closing out a deal first agreed earlier this year and marking a further step in the U.S. company’s portfolio streamlining strategy.
The transaction covers Kosmos’s subsidiary holding a 40.375% interest in the Trident Energy-operated Block G, home to the Ceiba field and Okume Complex production assets. The deal, originally valued with an upfront $180 million cash payment subject to adjustments, plus contingent payments tied to production performance, closed with a final cash consideration of approximately $127 million following post-closing adjustments reflecting cash generated by the assets in the first half of 2026 up to completion on 16 June 2026. Future contingent payments of up to roughly $40 million remain tied to oil price and production thresholds.
Panoro, which had held a 14.25% interest in Block G since early 2021, now holds a 54.625% stake following the acquisition. The company’s next crude oil lifting at the block — its first since completing the acquisition — covers approximately 546,000 barrels and is scheduled for the start of July.
Julien Balkany, Executive Chairman of Panoro, said the acquisition strengthens the company’s production and reserves base and will enhance the frequency and size of its crude liftings, driving long-term cash flow expansion. He described the deal as consistent with Panoro’s strategy of expanding its presence in Equatorial Guinea, where the company sees significant organic and external investment opportunities.
Andrew Inglis, Kosmos Energy’s Chairman and Chief Executive Officer, called the transaction “a win-win for Kosmos and Panoro,” noting that it high-grades Kosmos’s portfolio by divesting high unit operating cost production while increasing balance sheet resilience and retaining exposure to future upside from the assets. He added that the deal allows Kosmos to focus capital and expertise on its core deepwater assets across Ghana, Mauritania, Senegal, and the Gulf of America, and thanked CEMAC and the government of Equatorial Guinea for their timely approvals.
Proceeds from the sale will be used to repay borrowings under Kosmos’s reserves-based lending credit facility. The divestment removes production that contributed around 5,800 barrels of oil per day net to Kosmos in 2026 prior to completion, along with an asset retirement obligation liability of approximately $140 million from the company’s balance sheet. Kosmos said it will provide updated full-year 2026 guidance alongside its second-quarter results in August.
Source: offshore-energy.biz | oedigital.com | energy-pedia.com