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Kosmos Energy raises capital expenditure for Ghana from $400m to $430m

Texas-based oil explorer, Kosmos Energy, says it has budgeted for $430 million for its operations in Ghana for the year 2011.

Initially, Kosmos indicated in its S-1 Filing to the US Securities and Exchange Commission that it will invest an amount of $400 million in Ghana for the year.

But in its operational update statement published on its website on July 5, 2011, the company says it will be expanding its exploration exercises in the country.

Kosmos says it has secured additional rig capacity to drill an additional well known as the Cedrela-1 well west of the Makore prospect near the block’s southern boundary at the West Cape Three Points Block.

“The drilling of the Cedrela-1 well will bring Kosmos’ 2011 capital spending budget for Ghana to $430 million, $260 million of which will be spent on exploration and appraisal drilling”, it said.

The well will target multiple objectives that the company previously has encountered on the block and is located nine kilometers (km) (six miles) north of the Paradise-1 discovery well recently announced by Hess Corporation, says Kosmos.

It however anticipates that the well will be drilled in the third quarter of 2011.

In another development however, Kosmos said Thursday that it has delivered a force majeure notice to the Ghana government and state-owned oil company, the Ghana National Petroleum Corporation, according to a report by Market Watch.

The notice the report says is in respect of its offshore Cedrela-1 exploration well due to the delay in the arrival of a rig.

The Transocean Marianas semisubmersible drilling rig was expected to arrive at the location on or about July 10 to commence drilling on Kosmos’s Cedrela-1 well, the report cited Kosmos saying in a press release.

However, the rig was rendered temporarily inoperable following an incident reported Wednesday by Transocean Ltd., the rig owner, while it was working for another company. The incident occurred while preparations were being made to move the rig to the Cedrela-1 well location, Kosmos said.

Meanwhile Kosmos says it has begun the search for a substitute rig for drilling the Cedrela-1 well when either the Transocean Marianas or an alternative rig becomes available.

The company also said it has the necessary approvals to drill the Cedrela-1 well and anticipates that a rig will be available soon.

Transocean said Wednesday it has evacuated more than 100 workers from the Transocean Marianas rig off Ghana after it was discovered to have taken on water, the report indicated.

http://www.ghanabusinessnews.com/2011/07/07/kosmos-energy-raises-capital-expenditure-for-ghana-from-400m-to-430m/

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Reporting Oil and Gas project was launched on 4th June 2009atTakoradi, Western Region, Ghana by Penplusbytes (PPB – www.penplusbytes.org) with the vision of providing a one stop online information and knowledge about Ghana’s oil and gas sector
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