Kosmos Energy, an independent oil and gas exploration and production company, has slashed its capex for 2016 by 20%.
In its 4Q 2015 report on Monday, the company said it plans a 2016 capital expenditure budget of $650 million, a nearly 20% reduction from 2015.
Approximately $200 million is expected to be spent in Ghana, primarily related to the completion of the TEN project.
Furthermore, the company expects to spend approximately $250 million in Mauritania and Senegal related to the appraisal of the Ahmeyim discovery, the drilling of one oil test in Senegal, and the acquisition of additional seismic.
Kosmos’ planned exploration expenditures, which total approximately $200 million, include capital related to seismic acquisition, new ventures, and rig costs for the Atwood Achiever with no additional drilling planned after Ahmeyim-2 and the oil test in Senegal in 2016.
For the fourth quarter of 2015, the company generated net income of $24 million, compared to $128.8 million in the same period in 2014.
Kosmos’ total revenues for the fourth quarter 2015 were $121.9 million, versus $178.1 million in 4Q 2014.
Fourth quarter 2015 oil revenues were $121.7 million versus $177 million in the same quarter of 2014.
Total capital expenditures in the fourth quarter were $263 million.
Andrew G. Inglis, chairman and chief executive officer, said: “Our plan for 2016 reflects our commitment to positioning the Company for the future. We have the financial strength to invest prudently in activities that will create long term value – growing production and cash flows from Ghana, completing the appraisal of the Tortue resource, and testing the oil potential of our acreage offshore Senegal and Mauritania.”
Offshore Energy Today Staff