uploads///KOS Q Production

What Factors Impacted Kosmos’s 1Q17 Crude Oil Sales Volumes?

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Aug. 18 2020, Updated 5:26 a.m. ET

Kosmos Energy’s 1Q17 crude oil sales volumes

In 1Q17, Kosmos Energy (KOS) reported total crude oil (USO) sales volumes of 2.0 MMBbls (million barrels), ~4% higher compared to its 1Q16 crude oil sales volumes of 1.9 MMBbls. 

All of Kosmos Energy’s crude oil sales volumes are related to production from its assets located offshore Ghana.

However, sequentially, KOS’s crude oil sales volumes have fallen ~33% compared to its 4Q16 crude oil sales volumes of 3.0 MMBbls. The steep sequential fall in KOS’s crude oil sales volumes can be attributed to its net underlift position of 840,000 barrels of crude oil in 1Q17.

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Ghana assets

In 1Q17, Kosmos Energy’s Ghana assets produced 132.5 Mbpd (thousand barrels per day) of crude oil, ~66% higher than its 1Q16 production of ~80 Mbpd. This steep year-over-year rise in production from Ghana can be attributed to the start of production from KOS’s second major oil project, TEN (Tweneboa, Enyenra, and Ntomme), which started production in 3Q16.

Within Kosmos’s Ghana assets, in 1Q17, Jubilee field produced 82.5 MBbls per day, whereas its TEN fields produced 50 Mbpd.

Mauritania and Senegal update

In February 2017, British Petroleum (BP) completed its acquisition of 50.0% interest in Kosmos BP Senegal Limited. This partnership with BP will be useful to KOS due to BP’s deepwater development, LNG (liquefied natural gas) production, and marketing expertise, which should help KOS to develop its recent natural gas discoveries in Senegal.

On May 8, 2017, KOS announced a natural gas (UNG) discovery with a gas resource of ~15 Tcf (trillion cubic feet) in the Cayar Offshore Profond block located ~95 kilometers northwest of Dakar, Senegal. Due to this discovery, KOS’s stock price has been rising since May 8.

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