US Kosmos Back In Black
Texan oil and gas producer Kosmos Energy returned to profit in the second quarter, as revenues grew on the back of higher output.
Net income reached $16.8mn in the three-month period, marking a reversal from a $103.3mn loss booked a year earlier, Kosmos said in its earnings report on August 5. Revenues surged from $215.5mn to $395.9mn, owing to a surge in production to a record 71,100 boe/day in the period, up from a full-2018 average of 66,000 boe/day.
Kosmos, which operates in the US and African sections of the Atlantic margin, attributed the production growth to gains in the US Gulf of Mexico, including increased output at the Odd Job project and the restart of the Tornado field.
“Kosmos has continued to make good progress in the second quarter with record quarterly production and strong free cash flow,” CEO Andrew Inglis commented. “Kosmos has an active second half of the year with multiple catalysts across the portfolio including five exploration wells in Mauritania, Equatorial Guinea and the Gulf of Mexico, and the planned sell down of our position in Mauritania and Senegal which remains on track.”
Despite the encouraging results, however, Kosmos cautioned it expected full-year production to dip to the lower end of its 69,000-73,000 boe/day forecast, because of problems completing a well at the Tweneboa, Enyenra, Ntomme (TEN) fields off Ghana.
The company added that the BP-led Greater Tortue Ahmeyim LNG development off Senegal and Mauritania was on track for first gas in 2022, while pointing to the recent discovery of yet more gas that could justify a larger liquefaction plant than the 10mn mt/yr facility planned.