BP PLC on Monday confirmed the development concept for the second phase of the Greater Tortue Ahmeyim liquefied natural gas project in waters near Mauritania and Senegal.
The partnership with Petrosen, Societe Mauritanienne des Hydrocarbures and Kosmos Energy Ltd will evaluate a gravity-based structure as the basis for the GTA phase 2 expansion project with total capacity between 2.5 million and 3.0 million tonnes per year.
‘GTA is located 120 kilometres offshore in water depth of 2850 metres, one of the deepest subsea developments in Africa. Phase 1 – currently under development - will export gas to a floating production storage and offloading [unit] approximately 40 kilometres offshore where the gas will be processed and liquids separated, before exporting gas onward to floating LNG facilities 10km offshore. It is expected to produce around 2.3 million tonnes of LNG per year when operations commence,’ BP explained.
Meanwhile, Kosmos Energy released its 2022 results on Monday. The oil & gas producer, focused on Ghana, Guinea and the US Gulf of Mexico, swung to an annual pretax profit of $337.1 million from a loss of $43.4 million in 2021.
Revenue jumped to $2.3 billion from $1.3 billion. The average oil sales price per barrel was $100.00 in 2022, up 43% from $70.10 in 2021. Realised revenue per barrel of oil equivalent was 49% higher at $82.95, from $55.80 in 2021. The average gas price per one thousand cubic feet rose 88% to $7.24 from $3.85.
However, in the fourth quarter, average oil sales price fell to $83.88, down 16% from the average in 2022, average gas sales price was down 18% to $5.93 and average revenue per barrel of oil equivalent fell 8.9% to $75.62, all compared to 2022 overall.
In the fourth quarter alone, the company turned to a pretax loss of $199.9 million from a profit of $155.8 million a year prior. Revenue decreased to $563.7 million from $572.6 million.
Further, it noted a one-off charge of $450.0 million on an impairment of long-lived assets in the fourth quarter of 2022.
Kosmos explained: ‘At year-end 2022, we booked an impairment of $450 million against the TEN fields in Ghana. While 2P reserves were only reduced by approximately 3.5%, a more conservative future activity set is currently expected for the fields, prioritizing de-risked well locations within the TEN area.
‘Therefore, the impairment was largely impacted by the expected pace of potential future development activity, which has been deferred given the near-term focus on maximizing rate from the Jubilee field, as well as reserve mix between oil and gas.’
Looking ahead, Kosmos said it ‘expects to reach an important inflection point in the second half of 2023 with production forecast to grow as major development projects start to come online and capital expenditures expected to fall. With higher production and lower capital, free cash flow is expected to rise into 2024 providing multiple pathways for the company to deliver value for our shareholders.’
BP shares were 1.6% higher at 558.75 pence each in London on Monday morning, while Kosmos Energy shares were flat at 660.00p each.
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