Kosmos Energy announced the sale of its 40.375 % non‑operating working interest in the Ceiba Field and Okume Complex production assets offshore Equatorial Guinea to Panoro Energy. The transaction is valued at up to $219.5 million, comprising an upfront cash payment of $180 million and contingent payments of up to $39.5 million tied to future production and price thresholds. The sale will become effective on January 1 2025 and is expected to close in mid‑2026.
The deal is a key element of Kosmos’s strategy to strengthen its balance sheet after a recent downgrade to CCC by S&P Global Ratings. By monetizing a non‑core asset, Kosmos will use the proceeds to reduce borrowings under its reserves‑based lending facility and achieve approximately $100 million in cost savings over the next two years. The transaction also frees capital for investment in higher‑margin projects, notably the Greater Tortue Ahmeyim LNG development, and sharpens the company’s focus on its core deep‑water portfolio ahead of the next debt‑maturity cycle.
Panoro Energy will increase its stake in the Block G license from 14.25 % to 54.625 %, making it the largest partner in the license. The acquisition is described as “transformational” for Panoro, expanding its production scale and positioning the company to reach a group net production of 20,000 bopd by 2027. Panoro’s 2025 financials—$216.8 million in revenue, $97.6 million in EBITDA, and $73.3 million in net cash flow from operations—provide a solid foundation for the expanded portfolio.
Andrew G. Inglis, Kosmos Energy’s chairman and CEO, said, “This transaction reflects our continued focus on capital discipline and balance sheet resilience. The high‑grading of the portfolio by accelerating the monetization of later‑life, non‑operated production assets enables Kosmos to focus our capital and expertise on our world‑class assets where we can add the most value for our stakeholders over the long term. The proceeds from the transaction enhance liquidity and accelerate debt reduction, while the contingent payments ensure we retain exposure to future upside.” Julien Balkany, Executive Chairman of Panoro, added, “The accretive Acquisition of an additional 40.375 % interest in Block G represents a rare and highly strategic opportunity to significantly transform the scale of and strengthen our portfolio, creating a materially larger, more resilient business in order to deliver enhanced shareholder returns. The transaction economics and metrics are very attractive for Panoro, underlining our continued commitment to disciplined and prudent capital allocation.”
Prior to the sale, Kosmos reported a net loss of $124 million ($0.26 per diluted share) in Q3 2025 and an adjusted net loss of $72 million ($0.15 per diluted share). In Q4 2024, the company posted a net loss of $7 million ($0.01 per diluted share) and an adjusted net loss of $16 million ($0.03 per diluted share). Net debt stood at approximately $2.9 billion as of Q3 2025. The asset sale is expected to provide a significant liquidity boost and help the company meet covenant thresholds in a high‑leverage environment.
The market reacted positively to the announcement, reflecting confidence in Kosmos’s deleveraging strategy and Panoro’s expansion of its production footprint.
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