Kosmos Energy Ltd. on Sept. 9 agreed to sell select frontier exploration assets in a farm-down worth up to $200 million as the Dallas-based company continues to focus on proven basins with superior returns and shorter payback.

In a company release, Kosmos said it entered an agreement with a subsidiary of Royal Dutch Shell Plc to farm down interests in its portfolio of frontier exploration assets. The consideration consists of an upfront cash payment of approximately $100 million, plus future contingent payments of up to $100 million.

Under the terms of the agreement, Shell will acquire Kosmos’ participating interest in blocks offshore São Tomé & Príncipe, Suriname, Namibia and South Africa. Kosmos expects to realize approximately $125 million in total savings across capex and general and administrative expenses over the next two years as a result of the transaction, according to the company release.

Already have an account? Log In

Thanks for reading Hart Energy.

Subscribe now to get unmatched coverage of the oil and gas industry’s entire landscape.

Get Access