Kosmos to Drill Offshore Morocco

Zacks

Kosmos Energy Ltd. (KOS) is making well planned forays into offshore Morocco. For this purpose, the oil and gas exploration and production company has signed a long-term rig agreement with Atwood Oceanics, Inc. (ATW) contracting the new build drillship Atwood Achiever. The contract covers an initial period of three years at a day rate of approximately $595,000, with an option to extend the contract for an additional three-year term. Initial estimates for the total value of the contract come at $652 million.

The aforementioned drillship currently under construction in South Korea is scheduled for completion in Jun 2014. Kosmos expects to commence drilling operations in the second half of 2014.

The Atwood Achiever is a 6th generation ultra-deepwater, dynamically positioned drillship with enhanced offline capabilities and two BOP systems. The rig’s capabilities include drilling to total depths of up to 40,000 feet, and in water depths of up to 12,000 feet.

Kosmos Energy operates as an oil and gas exploration and production company focusing on under-explored regions in Africa. The company is based in Hamilton, Bermuda. The company's asset portfolio includes the existing production and other major project developments offshore Ghana, as well as exploration licenses with significant hydrocarbon potential offshore Ireland, Mauritania, Morocco and Suriname and onshore Cameroon.

The company is making great strides in under-explored regions in Africa. Last month, it received regulatory approval for its Tweneboa-Enyenra-Ntomme (TEN) discoveries in Ghana.

Located in the Deepwater Tano Block, 60 kilometers (37 miles) offshore Ghana and approximately 30 kilometers (18 miles) west of the Jubilee Field, the TEN project would be a major expansion for Kosmos. The project is expected to start delivering oil from 2016, with a plateau production rate of 80,000 barrels of oil per day.

Kosmos Energy holds a Zacks Rank #3, which is equivalent to a Hold rating for a period of one to three months. However, there are other stocks in the sector –  Dawson Geophysical Company (DWSN) and Exterran Holdings, Inc. (EXH) – which are expected to outperform over the next few months and carry a Zacks Rank #1 (Strong Buy).
 

Read the Full Research Report on EXH

Read the Full Research Report on KOS

Read the Full Research Report on DWSN

Read the Full Research Report on ATW

Zacks Investment Research



More From Zacks.com

Rates

View Comments (0)