Commodity price volatility
Revenue depends on realized oil, gas and LNG prices, which can move sharply.
- Scope
- Oil, LNG and condensate sales
- Materiality
- high
Kosmos Energy Ltd.
Kosmos Energy is a U.S.-based deepwater oil and gas exploration and production company with producing assets offshore Ghana, Equatorial Guinea, Mauritania, Senegal and the Gulf of America. It develops and operates offshore fields, sells crude oil, condensate and LNG, and uses exploration success plus infrastructure-led development to extend field life and add production.
−54,3 %
−23,1 %
0.75
0.45
| % | |
|---|---|
| Oil and gas production | 75% Production and sale of crude oil and natural gas from offshore fields in Ghana, Equatorial Guinea and the Gulf of America. |
| LNG and condensate sales | 15% Sales from the Greater Tortue Ahmeyim project in Mauritania and Senegal as LNG and condensate cargoes ramp up. |
| Exploration and appraisal | 5% Deepwater exploration, step-out wells and appraisal activity to convert discoveries into future production. |
| Development and infrastructure-led projects | 5% Field development, infill drilling and facilities work that support production growth and recovery. |
Kosmos sells hydrocarbons to commodity buyers, including oil purchasers and LNG offtakers, rather than to end consumers...
- LNG offtakersprimary
Buy LNG from the GTA Phase 1 project under long-term sales agreements; Kosmos must meet minimum annual contract quantities.
- Crude oil purchasersprimary
Buy oil and condensate from producing offshore assets in Ghana, Equatorial Guinea and the Gulf of America.
- National oil company partnerssecondary
Co-develop projects and receive financed carry amounts repaid from future revenues, especially in Mauritania and Senegal.
- Joint venture partnerssecondary
Share development, operating and redetermination economics in unitized offshore assets such as Jubilee and Greater Tortue Ahmeyim.
Kosmos operates across a small set of offshore basins, with core production in Ghana, Equatorial Guinea, Mauritania,...
- •Ghana is a core producing basin with Jubilee as a major asset
- •Equatorial Guinea contributes production and development activity
- •Mauritania and Senegal are ramping LNG from GTA Phase 1
- •Gulf of America assets support exploration and development growth
- •Offshore operations increase regulatory, logistics and spill-response needs
Kosmos is focused on extending production through infill drilling, well work and infrastructure-led exploration while...
01
Ramp GTA Phase 1 LNG productionshort-term
Adds contracted LNG cash flow and diversifies away from pure oil exposure.
02
Protect and grow output from producing assetsshort-term
Infill drilling and well work support near-term volumes and cash generation.
03
Advance infrastructure-led explorationmedium-term
Uses existing infrastructure to improve economics and speed to production.
04
Optimize portfolio through acquisitions and capital allocationmedium-term
Helps replace reserves and concentrate capital in higher-return offshore assets.
Kosmos faces the usual upstream risks of reserve uncertainty, dry holes, cost inflation and commodity price volatility,...
Exploration and development failure
Deepwater drilling is speculative and wells may not find commercial volumes.
- Scope
- Winterfell-style step-out wells and appraisal drilling
- Materiality
- high
Offshore regulatory and environmental compliance
U.S. Gulf spill-response rules and host-country regulations increase cost and delay risk.
- Scope
- Gulf of America operations and OSRP requirements
- Materiality
- high
Counterparty and partner obligations
Carry advances and LNG delivery commitments can require funding or penalties if volumes underperform.
- Scope
- Tortue Phase 1 SPA and national oil company carry agreements
- Materiality
- high
Cybersecurity and operational disruption
A breach could interrupt offshore operations, data systems or partner interfaces.
- Scope
- Corporate systems and business partners
- Materiality
- medium
Revenue recognition on hydrocarbon sales
Affects reported oil and gas revenue and period comparability
Derivative and hedging accounting
Can materially affect quarterly earnings
Proved reserves and depletion estimates
Affects operating profit and asset carrying values
Carry advances and long-term receivables
Affects balance sheet classification and credit risk
Asset retirement obligations and impairment
Can change liabilities and asset values materially
: 28.4.2026