Oil and gas explorer Kosmos Energy said Oct. 28 it had made one of the largest discoveries of natural gas in recent years in waters offshore Mauritania, where it sees the potential to extract 50 trillion cubic feet (Tcf) of gas.
In view of the discovery at the Orca-1 well, Kosmos said it had decided to extend the timeline to sell down its interest in the area to next year.
“Orca-1, which we believe is the largest deepwater hydrocarbon discovery in the world so far this year, further demonstrates the world-scale quality of the Mauritania gas basin,” Kosmos CEO Andrew Inglis said in a statement.
The area off Mauritania and its neighbor Senegal in West Africa is one of the most-watched basins in the world for gas drilling and has attracted investments from companies such as Australia’s Woodside Energy and BP.
If exploited, such discoveries could transform the economies of both nations, bringing much-needed revenues. Kosmos had planned to sell down its interest in the Mauritania-Senegal Basin by the end of the year, but the company extended its timeline to 2020, “giving potential bidders additional time to analyze the new data,” the company said.
The volume of gas potentially trapped in the area is equal to about 8.9 billion barrels of oil equivalent, which could make it one of the largest hydrocarbon discoveries in the world since Italy’s Eni discovered the 30 Tcf Zohr gas field offshore Egypt in 2015.
Kosmos’ partners in the BirAllah gas hub include Société Mauritanienne des Hydrocarbures et de Patrimoine Minier and BP.
Gulfport Energy, whose production is focused primarily in the Utica Shale in Ohio and Scoop acreage in Oklahoma, also made a new commitment to using excess cash to pay down debt.
Paulson & Co. relented that it no longer opposes the merger of Houston-based independents Callon Petroleum and Carrizo Oil & Gas, though the hedge fund also cut its investment in Callon.
Today’s featured Forty Under 40 honoree is Kevin Crews, who has led teams that have signed or closed more than $5 billion worth of deals since joining Kirkland & Ellis as a founding partner.