Kosmos has drilled six successful exploration wells in the area – gas destined for LNG exports
Kosmos Energy (ticker: KOS) announced today the discovery of a very large gas field in offshore Senegal, adding to the company’s Senegal/Mauritania assets.
The Yakaar-1 well has encountered 148 feet of net pay in three pools, with a gross hydrocarbon column of just 394 feet. According to Kosmos, the reservoir consists of “thick, stacked reservoir sands over a very large area with good porosity and permeability.” In total, the company estimates that Yakaar-1 discovered a P50 resource of 15 Tcf of gas, in line with expectations. While Kosmos had hoped this well would discover liquids-rich gas, preliminary testing suggests this discovery is in line with previous development, between 15 bbl/MMcf and 30 bbl/MMcf.
Source: Kosmos Energy
Up to 50 Tcf in Senegal-Mauritania fairway
This discovery is the sixth consecutive successful exploration and appraisal well drilled by Kosmos in the area, a 100% success rate. Tortue-1, the first well the company drilled, opened the play in April 2015 when it discovered 350 feet of net pay. Since that time the company has drilled multiple wells to appraise its discovery. According to estimates from May 2016, the Senegal-Mauritania fairway may contain up to 50 Tcf of resource.
Development concentrates on LNG export
Current development plans focus on LNG exports. Two FLNG ships would operate at a combined 600 MMcf/d of capacity, with additional pipelines supplying power plants in Senegal and Mauritania. Front-end engineering is expecte3d to begin in Q3 2017, with FID in 2018. First gas from FLNG 1 is scheduled for 2021, while FLNG 2 will come online in 2023.
Source: Kosmos Energy
This development plan was conceived before the results of Yakaar-1 were known; meaning Kosmos may have several development projects in the area. Kosmos Chairman and CEO Andrew Inglis commented on this possibility, saying “Together with the Teranga – 1 discovery made last year, we believe this resource will support a second cost-competitive LNG hub.”
Three additional exploration wells planned in 2017
Kosmos plans to drill three other wells in the area in 2017, as it searches for more liquids-rich gas. The three prospects targeted could contain a combined 5.25 BBOE if the company’s liquid yield projections are correct.
Kosmos partnered with BP in December 2016 to develop this asset, as BP has developed LNG projects in the past. Overall, five companies have interest in the Greater Tortue Complex, Kosmos, BP, SMHPM (Mauritania’s NOC), Petrosen (Senegal’s NOC) and Timis Corp.
Source: Kosmos Energy
