Kosmos Energy secured parliamentary ratification of license extensions for its West Cape Three Points and Deepwater Tano Petroleum Agreements, extending the operating period to 2040. The extensions are expected to unlock up to $2 billion in incremental investment and allow the company to drill up to 20 new Jubilee wells, which will increase 2P reserves and boost production potential.
The J74 well went online in early January and is producing about 13,000 barrels of oil per day, helping the company maintain a gross Jubilee production of more than 70,000 barrels per day in February. The J75 well has been drilled and is expected to come online by the end of the first quarter of 2026. In addition, the TEN fields partnership has agreed to acquire the FPSO for $205 million gross, of which $40 million will be net to Kosmos, with completion scheduled for the end of Q1 2027.
The extensions provide long‑term operational security, de‑risking future capital allocation and giving Kosmos a stable platform to continue developing its flagship assets. The anticipated $2 billion of investment and the addition of new wells are expected to raise 2P reserves and increase production, while the acquisition of the TEN FPSO is projected to reduce operating expenses from 2026 onward, improving margins.
Andrew G. Inglis, Kosmos’ chairman and CEO, said the ratification marks an important milestone for Ghana and the company, noting that Jubilee is a world‑class field with significant remaining potential that can be unlocked through continued investment, regular drilling and high facility reliability, supported by the latest seismic acquisition and processing technologies. He added that with Jubilee output exceeding 70,000 bopd and GTA producing above nameplate capacity, Kosmos’ total production has reached record levels, strengthening the company’s resilience and positioning it to create long‑term value for shareholders.
Shares in Kosmos Energy rose 5.7% in London on the day of the announcement, reflecting investor confidence in the long‑term security of operations until 2040 and the potential for substantial future investment and production growth. The market reaction was driven by the de‑risking of future operations and the clear path for continued development of key assets.
The license extensions solidify Kosmos’ position in West Africa’s deepwater sector, allowing the company to sustain investment, grow reserves, and continue contributing to Ghana’s domestic gas supply for power generation. The acquisition of the TEN FPSO signals a move toward greater operational efficiency and cost reduction, while the partnership with the TEN fields partnership underscores the strategic importance of the Ghanaian assets to the company’s long‑term growth strategy.
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