Kosmos Energy Announces Rig Share Agreement for Exploration Program

Kosmos Energy Ltd. (“Kosmos”) (NYSE: KOS) announced on Thursday, that it has entered into a one well rig share agreement with BP plc (LSE: BP) (NYSE: BP) and Maersk Drilling, a unit of A.P. Moller -Maersk Group (CO: MAERSK), for the rig Maersk Discoverer.


Maersk Discoverer; Photo Courtesy of MarineTraffic.com

The rig is expected to commence drilling operations on the FA-1 (formally Eagle-1) exploration well in the Foum Assaka Offshore block in Morocco during the first half of 2014. Under the terms of the Agadir farm-out agreement with BP announced in October, BP will fund Kosmos’ share of the well costs, subject to an agreed maximum spend.

Constructed in 2009, the Maersk Discoverer is a sixth generation, ultra-deepwater, dynamically positioned semi-submersible rig capable of drilling to total depths of up to 30,000 feet, and operating in water depths of up to 10,000 feet.

Darrell McKenna, chief operating officer, said, “We are pleased to have finalized the rig share agreement with BP and Maersk Drilling for this highly capable and efficient rig, currently working in the Mediterranean region. In conjunction with our long-term rig agreement for the Atwood      Achiever, we have secured the required rig resources to execute on our exploration program beginning in 2014. Based on the current schedule, we expect to spud the FA-1 well in the first half of the year and anticipate operations will take approximately three months to complete.”   

Source: Kosmo Energy Website


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