The second quarter of 2023 saw Kosmos Energy progress its major projects, and in the third quarter, Kosmos started production in the Jubilee South East Field offshore Ghana and began drilling for the Tiberius infrastructure-led exploration program in the Gulf of Mexico.
The company posted for the second quarter a net income of $23 million, or adjusted net income of $27 million on revenues of $273 million, according to Kosmos’ second quarter earnings.
Speaking during an earnings call with investors on Aug. 7, Kosmos CEO Andrew G. Inglis said the startup of the Tullow-operated Jubilee South East project in July starts “the next chapter for the prolific Jubilee Field.”
The second well at Jubilee South East going online brought production up to about 100,000 bbl/d. During the third quarter, one producer and two water injectors are expected to go online, he said, noting the second water injector had been previously slated for 2024.
“Given the efficiency of the drilling program in Ghana this year, this injector will add pressure support to Jubilee Southeast as we move into 2024,” he said.
Jubilee offers a strong set of drilling opportunities for the remainder of the decade, he said.
“We're in our third cycle of 4D (seismic). Every time, it is bringing forward more opportunities,” Inglis said.
Kosmos’ activity in the Gulf of Mexico has increased significantly in the third quarter, he noted. Much of that is associated with the Kosmos-operated Tiberius program.
“Tiberius is a four-way structural trap in the outboard Wilcox trend, targeting an estimated gross resource of around 135 MMboe. The well was spud in early July and is expected to take around two months to hit target depth with results expected in September,” he said.
In August, Kosmos expects development drilling to begin at Winterfell, which is operated by Beacon Offshore Energy. In the first phase of the drilling campaign, three of five planned wells will target gross resource of around 100 MMboe with an upside of 200 MMboe across the greater Winterfell area, Inglis said. Phase two would add the remaining two wells.
“The project remains on track to start production at the end of the first quarter of 2024,” he said.
He said output at Winterfell would be pipeline-constrained at 20,000 bbl/d.
“I think with success we would look at actually adding another flow line,” he said.
At the BP-operated Greater Tortue Ahmeyim project offshore Mauritania and Senegal, Kosmos expects “a very active six to nine months.” First gas, earlier planned for late 2023, has been pushed back to the first quarter of 2024 due to delays in completing subsea operations, Kosmos said. Now, the infield flowlines and subsea structures are slated for installation in the first quarter of 2024.
Pre-commissioning for the Floating LNG unit is underway, with sailaway targeted around the end of the third quarter of 2023 and arrival around the end of the year. The FPSO departed the shipyard in China in January 2023, but will delay arrival at its installation destination to align with the revised subsea operations schedule. Construction on the hub terminal is complete with activity focused on progressing handover to operations in the third quarter of 2023. All four wells have been completed and expected production capacity is significantly higher than what is required for first gas.
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