KOS - Kosmos Energy warns of delay higher costs at Greater Tortue LNG project

Kosmos Energy (KOS) says delivery of the floating production storage and offloading vessel for the Greater Tortue Ahmeyim liquefied natural gas project offshore Mauritania and Senegal likely will be delayed by three months, pushing the timing of first gas to Q3 2023.Project partner [[BP]] says phase 1 project costs are expected to increase, citing the impacts of COVID-19 including the FPSO delay, cost inflation and scope growth.Kosmos expects the gross cost for the project will be 15% higher, raising estimated phase 1 costs to first gas net to Kosmos of ~$100M, coming primarily in 2023.Kosmos also says Q2 net production was 52K boe/day, slightly below prior guidance due to lower production in Equatorial Guinea.The company maintains full-year production guidance of 53K-57K bbl/day, with a year-end exit rate of ~60K boe/day expected as new wells come online.Kosmos had been expected to see first gas at Greater Tortue in H1 2023.

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Kosmos Energy warns of delay, higher costs at Greater Tortue LNG project