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Kosmos Takes FID for Greater Tortue Ahmeyim Project Phase 1

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Kosmos Energy Ltd (KOS - Free Report) along with its partners announced that a Final Investment Decision (FID) has been taken with respect to Phase 1 of the Greater Tortue Ahmeyim project.

The partners including Kosmos, BP, Petrosen and SMHPM agreed to the final elements of the project at a meeting held in Nouakchott.

Gas for the Greater Tortue Ahmeyim project will be produced from a deepwater subsea system and mid-water floating production, storage and offloading (FPSO) vessel, which will process the gas, eradicating heavier hydrocarbon components. Consequently, the gas will be transmitted to a floating liquefied natural gas (FLNG) facility at a nearshore hub located along the maritime borders of Mauritania and Senegal.

Total recoverable gas in the field is estimated at about 15 trillion cubic feet, while the FLNG facility for Phase 1 is intended to provide about 2.5 million tons per annum on average. The partners are working on subsequent phases of development to expand liquefaction capacity to about 10 million tons per annum.

The gas provided by the project will be used for global export besides domestic use in both Mauritania and Senegal. The project is expected to yield its first gas in the first half of 2022. Following a competitive tender process involving all partners, BP Gas Marketing has been chosen as the buyer for the LNG offtake for Greater Tortue Ahmeyim Phase 1.

The process to obtain final regulatory and contract approvals will continue, subsequent to which Phase 1 of the Greater Tortue Ahmeyim project will move into a detailed design and construction phase, with awarding of engineering, procurement, construction and installation (EPCI) contracts. Project execution is anticipated to commence in the first quarter of 2019.The project is expected to move from the development phase to production in the first half of 2022 with BP as the operator.

The partners believe there is potential for two additional world-class gas hubs in the region – one near the Bir Allah discovery offshore Mauritania and the other near the Yakaar / Teranga discoveries offshore Senegal.

Zacks Rank & Key Picks

Currently, Kosmos Energy carries a Zacks Rank #3 (Hold).

A few better-ranked players in the same sector are SunCoke Energy, Inc (SXC - Free Report) , Cabot Oil & Gas Corporation and Enterprise Products Partners L.P. (EPD - Free Report) . While SunCoke Energy sports a Zacks Rank #1 (Strong Buy), Cabot Oil and Enterprise Products Partners carry a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.

SunCoke acquires, owns and operates coke making and coal mining operations. The company delivered average positive earnings surprise of 302.6% in the last four quarters.

Houston, TX-based Cabot is an independent oil and gas exploration company with producing properties mainly in the continental United States. The company delivered average negative earnings surprise of 5.7% in the last four quarters.

Headquartered in Houston, TX, Enterprise Products Partners is among the leading midstream energy players in North America. It pulled off average positive earnings surprise of 9.3% in the last four quarters.

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