US-based oil and gas exploration and production company Kosmos Energy has completed the sale of its non-operating working interest in production assets offshore Equatorial Guinea to UK-based independent exploration and production company Panoro Energy.
Earlier this year, Panoro Energy I agreed to the takeover A subsidiary of Kosmos Energy, which holds a 40.375% interest in Block G operated by Trident Energy, where Ceiba field and Okume complex The production assets are in place, with an upfront cash payment of $180 million, subject to certain adjustments, as well as contingent payments of $12.5 million tied to SEPA’s production performance and $9 million payable in each of 2027, 2028 and 2029, which are dependent on oil prices and established production limits.
The American player has now confirmed the completion of the sale, which is seen as strengthening its portfolio, allocating high-quality capital, reducing costs and enhancing liquidity. The final cash consideration upon completion, i.e. post-closing adjustments, was approximately $127 million. Proceeds from the transaction will be used to repay borrowings under the company’s reserve-based lending (RBL) credit facility.
Panoro has held a 14.25% stake in Block G since early 2021, but this acquisition has increased the company’s stake to 54.625%. The company’s next volume of crude oil in the region, the first after the completion of the acquisition, is approximately 546,000 barrels and is scheduled to be completed at the beginning of July.
Julian BalkanyPanoro CEO commented: “Having been a partner in Block G since 2021, we know the asset well and have a high degree of confidence in its quality and potential to generate cash and remain on the upside. With our interest now increased to 54.625 percent, this acquisition strengthens our production and reserves base and will enhance the frequency and scale of our crude oil lifts, resulting in significant long-term cash flow expansion to enhance shareholder returns.”
“This timely acquisition, announced two days before the Middle East conflict began, is consistent with Panoro’s strategy to expand its presence in Equatorial Guinea, where we see a lot of organic and external investment opportunities to realize our growth ambition.”
The company claims that the closing adjustments reflect cash received from the assets in the first half of 2026 through completion on June 16, 2026. However, future contingent payments of approximately $40 million are subject to certain oil price and production limits.
Andrew J. InglisChairman and CEO of Kosmos Energy commented: “We are pleased to close this transaction, which is a profitable transaction for both Cosmos and Panoro. For Cosmos, this transaction uplifts our portfolio by eliminating high unit operating cost production and increasing balance sheet flexibility, while retaining exposure to future upside from assets.
“Strategically, this also enables Kosmos to focus our capital and expertise on our world-class assets where we can add the most value for our stakeholders over the long term. We would like to thank the Economic and Monetary Community of Central Africa and the Government of Equatorial Guinea for their timely approvals.”
Cosmos’ year-to-date production has been about 5,800 barrels of oil per day net for the company. The asset retirement liability liability of approximately $140 million will be removed from the balance sheet.
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