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KOSMOS ENERGY . Kosmos Energy Acquires Additional Ghana Interests for $ 550 Million October 13 , 2021 Assets Acquired at Compelling Valuation With a Significant Enhancement to the Five - year Plan DALLAS -- ( BUSINESS WIRE ) -- Oct . 13 , 2021-- Kosmos Energy ( NYSE / LSE : KOS ) ( " Kosmos " or the " Company " ) announced today that it has acquired an additional 18.0 % interest in the Jubilee field and an additional 11.0 % interest in the TEN fields in Ghana from Occidental Petroleum ( " OXY " ) for a purchase price of $ 550 million with an effective date of April 1 , 2021. Consideration due to OXY at completion was approximately $ 460 million after taking into account closing adjustments . Key Highlights • Accelerates Kosmos ' strategic delivery o Delivers near - term cash generation from high - margin oil with the acquired assets expected to generate ~ $ 1 billion of free cash flow by year - end 2026 at $ 65 / barrel Brent o Underpins transition to balanced oil and gas portfolio Acquiring assets at a compelling valuation o 2P reserves expected to deliver ~ 3x purchase price at $ 65 / barrel Brent o Simplified partnership with the aligned objective to maximize the value of the assets o Limited integration risk or incremental G & A costs Highly accretive across all key metrics o Attractive acquisition price drives significant net asset value accretion o Cash consideration equivalent to 1.4x 2022E EBITDAX of the assets being acquired at $ 65 / barrel Brent o Expected payback of less than 3 years at $ 65 / barrel Brent o Resilient at lower oil prices with all key metrics accretive at $ 45 / barrel Brent • Enhances free cash flow and accelerates de - leveraging o Significant free cash flow generation expected to accelerate de - leveraging ( targeting less than 2.0x net debt / EBITDAX by year - end 2022 at $ 65 / barrel Brent ) and fund remaining Tortue capital expenditure to first gas ● Supports Kosmos ' ESG agenda o Growing investment in Africa aligned with Kosmos ' objective to support the " Just Transition " and deliver tangible economic and social benefits in Ghana o Partnership working to drive down CO2 emissions and enabling development of gas resources to provide lower cost , lower carbon power Andrew G. Inglis , Chairman and Chief Executive Officer of Kosmos said : " This is a compelling transaction for Kosmos that accelerates our strategic delivery and is expected to provide long - term sustainable cash flow from fields where we have a deep understanding of the value and future upside . We expect the additional Ghana interests to generate around $ 1 billion of incremental free cash flow by the end of 2026 at $ 65 Brent with upside given current prices . We plan to use the additional cash flow from these assets to reduce absolute debt levels and fund our growth in LNG . Financially , the transaction is highly accretive across all key metrics , including free cash flow , and accelerates our committed path to deleveraging the balance sheet . With significant net asset value accretion for the company , we believe that this transaction will deliver substantial returns to our shareholders . The transaction creates a simplified and aligned partnership in both the Jubilee and TEN fields , with both Kosmos and GNPC increasing their ownership . The partnership is committed to investing in both fields to maximize the value of the assets and reduce the carbon intensity of operations for the benefit of all stakeholders . " Interests acquired Kosmos has acquired an additional 18.0 % interest in the Jubilee field and an additional 11.0 % interest in the TEN fields in Ghana . This transaction increases Kosmos ' interests in Jubilee to 42.1 % and in TEN to 28.1 % . The transaction is subject to a 30 - day pre - emption period , which , if fully exercised , could reduce Kosmos ' ultimate interest in Jubilee by 3.8 % to 38.3 % , and in TEN by 8.3 % to 19.8 % . Prior to closing the transaction , OXY resolved certain historical tax claims related to the sold interests . Using Kosmos ' year - end 2020 reserves report , prepared by independent reserve auditor Ryder Scott , estimated 2P reserves being acquired as part of today's transaction were approximately 104 million barrels of oil equivalent at year - end 2020. The assets being acquired have a proved and probable ( 2P ) post - tax NPV10 valuation of around $ 1.6 billion ¹ . The acquired assets are currently producing approximately 17,000 barrels of oil per day net and are expected to generate approximately $ 325 million of EBITDAX in 2022 at $ 65 Brent . Kosmos has worked closely with the operator and joint venture partners in 2021 to drive higher reliability and improve operational performance in Ghana . Significant progress has been made with new wells delivering higher production , high levels of FPSO uptime , near - record water injection and