Kosmos Energy Ltd. (NYSE:KOS) shares are trading higher premarket on Thursday. The company disclosed the start of gas production at the Greater Tortue Ahmeyim LNG project offshore Mauritania and Senegal, operated by BP p.l.c. (NYSE:BP).
Gas from Phase 1 began flowing to the FPSO vessel on December 31, 2024, with liquefaction at the floating LNG vessel set to follow.
Phase 1 is expected to produce 2.3 million tonnes of LNG annually, with a vessel nameplate capacity of 2.7 mtpa.
The achievement of first gas marks a significant milestone for the partnership and the governments of Mauritania and Senegal, advancing their goal of becoming a key LNG production hub in West Africa.
The first LNG production is anticipated soon. The initial cargo is expected in the first quarter of 2025, at which point revenue recognition for the project will commence.
Chairman and Chief Executive Officer Andrew G. Inglis said, "Achieving first gas sets the stage for us to ramp up production and reach the ~90,000 boepd production target we set two years ago. With our key growth projects largely delivered and capex falling, Kosmos is well positioned going into 2025."
"The company remains focused on disciplined capital allocation and the generation of free cash flow that enables us to pay down debt, reduce leverage to less than 1.5x, and enhance the financial resilience of the company."
Following the end of the third quarter, the company stated that Equatorial Guinea achieved the startup of its first infill well, increasing gross production to approximately 30,000 barrels of oil per day (bopd).
Investors can gain exposure to the stock via Clough Select Equity ETF (NYSE:CBSE) and Acquirers Deep Value ETF (NYSE:DEEP).
Price Action: KOS shares are up 3.22% at $3.53 premarket at the last check Thursday.
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