Kosmos Energy Ltd saw its stock lift roughly 9% in premarket trading on Friday after Ghana's parliament ratified extensions of the West Cape Three Points and Deepwater Tano Petroleum Agreements through 2040. The license renewals apply to the Jubilee and TEN producing blocks off Ghana's coast and are linked to planned investment and development changes in the fields.
The license amendments are projected to enable up to $2 billion in incremental investment in Ghana and to supply greater volumes of gas for domestic electricity production. Under the amended Jubilee plan of development, operators will be able to drill as many as 20 additional wells in the field. Kosmos has indicated it expects 2P reserves at Jubilee to rise as a result of the revised program.
Operational updates at Jubilee include the J74 appraisal - which came online in early January - now running at full ramp-up with gross production near 13,000 barrels of oil per day. For February month-to-date, average gross oil output from the Jubilee complex exceeded 70,000 barrels per day. The first well of the five-well 2026 campaign, J75, has already been drilled and logged about 40 meters of net pay; it is scheduled to be brought online around the end of the first quarter.
At the TEN complex, the partners signed an agreement this week to buy the floating production, storage and offloading vessel for a gross price of $205 million, which equates to roughly $40 million net to Kosmos. Management expects the acquisition to drive material reductions in operating expenses beginning in 2026, with the transaction expected to reach completion by the end of the first quarter of 2027.
Financial moves earlier this year included Kosmos closing a $350 million Norwegian bond issuance in January. The company used $100 million of those proceeds to repay borrowings under its Reserve Based Lending facility and applied the remaining funds toward repurchasing its 2027 senior unsecured notes. On its 2027 oil production, Kosmos has hedged two million barrels with a floor price of $60 per barrel.
Contextual summary - The parliamentary ratification secures extended operating tenure for Kosmos and partners through 2040, enabling near-term drilling and asset purchases tied to production and cost outcomes already in motion.