Kosmos cuts $75 million from budget as Greater Tortue Ahmeyim project hits delay

Kosmos Energy, Dallas, has cut an additional $75 million from its 2020 budget, including costs associated with the BP-operated Greater Tortue Ahmeyim LNG project in Mauritania and Senegal now delayed due to restrictions arising from the coronavirus pandemic.

The company is now targeting total capital expenditure of $200-225 million in 2020. In March, the company made a 30% cut to its 2020 base production capital to under $250 million from the previous $325-375 million budget (OGJ Online, Mar. 17, 2020).

Greater Tortue Ahmeyim project activities impacted include construction of the breakwater during the 2020 weather window. The Phase 1 project timeline is expected to be delayed by 12 months, with first gas now expected in the first half of 2023. Phase 1 of the project is currently over 30% complete.

Kosmos said it is working with BP to establish a revised 2020 budget with the objectives of maintaining the project economics and extending the carry of its capital obligations through the end of this year.