Kosmos Energy 2013 Annual Report 2013 (with 10K) | Page 34

The following table shows the number of wells that are in the process of being drilled or are in active completion stages, and the number of wells suspended or waiting on completion as of December 31, 2013. Actively Drilling or Completing Exploration Development Gross Net Gross Net Ghana Jubilee Unit . . . . . . . . . West Cape Three Points TEN . . . . . . . . . . . . . . Deepwater Tano . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Wells Suspended or Waiting on Completion Exploration Development Gross Net Gross Net . . . . — — — — — — — — — — 1 — — — 0.17 — — 9 — 1 — 2.78 — 0.18 — — 13 — — — 2.21 — Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 1 0.17 10 2.96 13 2.21 Undeveloped license area expirations The WCTP PA has a duration of 30 years from its effective date (July 2004); however, in July 22, 2011, at the end of the seven-year exploration phase, the WCTP Relinquishment Area was relinquished. We maintain rights to our three existing discoveries within the WCTP Block (Akasa, Mahogany and Teak) as the WCTP PA remains in effect after the end of the exploration phase. Effective January 14, 2014, the Ministry of Energy and GNPC entered into a Memorandum of Understanding with Kosmos Energy, on behalf of the the WCTP PA Block partners, wherein all parties have settled all matters pertaining to the Notices of Dispute for the Mahogany East PoD and the Cedrela Notice of Force Majeure, and the Ministry of Energy has approved the Appraisal Programs for the Mahogany, Teak, and Akasa discoveries. As a result of the settlement, a portion of the WCTP PA area which contained the Cedrela prospect has been relinquished. We and our WCTP Block partners have certain rights to negotiate a new petroleum contract with respect to the WCTP Relinquishment Area. We and our WCTP Block partners, the Ghana Ministry of Energy and GNPC have agreed such WCTP PA rights to negotiate extends from July 21, 2011 until such time as either a new petroleum agreement is negotiated and entered into with us or we decline to match a bona fide third party offer GNPC may receive for the WCTP Relinquishment Area. The exploration phase of the DT PA expired in January 2013. Our existing Wawa discovery within the DT Block was not subject to relinquishment upon expiration of the exploration phase of the DT PA, as the DT PA remains in effect after the end of the exploration phase. Evaluation and appraisal activities continue on the Wawa discovery. Additionally, the TEN development project was not subject to relinquishment. We and our DT Block partners exercised certain rights of first refusal for the granting of a new petroleum contract and certain rights to negotiate a new petroleum contract with respect to the DT Relinquishment Area. During 2013, we took all actions required to voluntarily relinquish all of the area under the Ndian River Block and Fako Block in Cameroon. Domestic Supply Requirements Many of our petroleum contracts or, in some cases, the applicable law governing such agreements, grant a right to the respective host country to purchase certain amounts of oil produced pursuant to such agreements at international market prices for domestic consumption. In addition, in connection with the approval of the Jubilee Phase 1 PoD, the Jubilee Field partners agreed to provide the first 200 Bcf of natural gas produced from the Jubilee Field Phase 1 development to GNPC at no cost. See ‘‘Item 1A. Risk Factors—Our inability to access appropriate equipment and infrastructure in a timely 27