Kosmos Energy has provided an operational and financial update on its recent business activities.
Operational Update
In Ghana, the second producer well (J-74) in the 2025-2026 Jubilee field development campaign has been successfully drilled and completed, and is expected online shortly. The well encountered approximately 50 meters of net pay, in line with Kosmos' expectations and has been completed in three zones, similar to the J-72 well, which began producing in summer 2025. Based on the flowback of the well to the rig, production from J-74 is expected to be over 10,000 barrels of oil per day (bopd), enabling Jubilee to start 2026 at a rate of nearly 70,000 bopd gross with J-74 online. During the fourth quarter of 2025, gross Jubilee production averaged ~59,000 bopd, consistent with expectations of slowing base decline (~5% quarter over quarter). In addition to the J-72 and J-74 producer wells, the partnership has approved an additional five wells (four producer wells and one injector well) in 2026, and drilling of the next producer has commenced.
Also in Ghana, the partnership received Government approval in late December for the license extensions for its West Cape Three Points and Deep Water Tano Petroleum Agreements, which cover the Jubilee and TEN fields. The agreements have now been submitted to parliament for formal ratification. Accordingly, these agreements will be extended to 2040, and starting from July 2036, Ghana National Petroleum Corporation's (GNPC) share in the fields will increase by a further 10% interest and the joint venture partners shares will decrease pro rata. As part of the extension of the Petroleum Agreements, the Jubilee plan of development has been amended to include up to 20 additional wells in the field. As a result of the extension Kosmos expects to realize an increase in 2P reserves.
Lastly in Ghana, the TEN partnership has agreed final sale and purchase terms to acquire the TEN FPSO at the end of its current lease in 2027, and we expect the final agreed Sale and Purchase Agreement to be executed early in 2026. As ownership is transitioned to the partnership, we expect TEN operating costs to significantly reduce and positively impact the Company's leverage in 2026.
In Mauritania and Senegal, ramp-up of the GTA liquefied natural gas (LNG) project continued with the floating LNG vessel operating at nameplate capacity (2.7 million tonnes per annum equivalent) for the month of December 2025, reaching a peak production rate of approximately 3.0 million tonnes per annum. Eighteen and a half gross LNG cargos and one condensate cargo were lifted in 2025. As a result of this ramp-up in performance of the GTA field, the partnership expects cargo liftings to nearly double in 2026.
Financial Update
A borrowing notice was submitted on January 2, 2026, for a $100 million draw on the second tranche of the Company's Gulf of America Term Facility. Concurrently, a notice of redemption was also issued for the remaining 2026 unsecured notes. Redemption of the notes is expected to occur on January 13, 2026. In addition, as the Company now looks to refinance its 2027 debt maturities, the reserve-based lending ("RBL") banks have agreed a waiver allowing a subsidiary of the Company to issue new secured financing, which benefits from the subordinated guarantees currently provided to the existing unsecured notes, subject to final legal documentation.
Source: Kosmos Energy
