to 24.07710%. The accounting for the Jubilee Unit is in accordance with the redetermined tract
participation stated. Although the Jubilee Field is unitized, Kosmos’ participating interests in each
block outside the boundary of the Jubilee Unit remains the same. Kosmos remains operator of the
WCTP Block outside the Jubilee Unit area.
We, as the Technical Operator, led the Integrated Project Team (‘‘IPT’’), which consisted of
geoscience, engineering, commercial, project services, and operations disciplines from within the Jubilee
Unit partnership. We evaluated the resource base and developed an optimized reservoir depletion plan.
This plan included the design and placement of wells and the selection of topside and subsea facilities.
Our responsibilities also extended to project management of the design and implementation of the
complete field development system. The Unit Operator is responsible for drilling and completing the
development wells for the Jubilee Field development, according to the specifications outlined by the
IPT, and providing other in-country support. Upon first production, the Unit Operator assumed
responsibility for the day-to-day operations and maintenance of the FPSO as well as overseeing and
optimizing the reservoir management plan based on field performance, including any well workover
activity or additional infill drilling and subsequent phases. The responsibility of the Technical Operator
and the IPT for the Jubilee Field Phase 1 development was completed upon commissioning of the gas
compression and injection systems and project administrative close out.
First oil from the Jubilee Field Phase 1 development commenced on November 28, 2010, and we
received approval from Ghana’s Ministry of Energy for the Jubilee Field Phase 1A development in
January 2012. We submitted the JFFDP to Ghana’s Minister of Energy in December 2012 and
subsequently withdrew based on discussions with the government of Ghana. A PoD providing for the
next development of reservoirs within the Jubilee Field is expected to be submitted during 2014,
although we can give no assurance that such approvals will be forthcoming in a timely manner or at all.
Morocco Exploration Agreements
Effective September 1, 2011, we entered into the Cap Boujdour Offshore Petroleum Agreement as
the operator. In October 2013, we entered into a farm-out agreement with Cairn, covering the Cap
Boujdour Offshore block, offshore Western Sahara. Under the terms of the agreement, Cairn will
acquire a 20% non-operated interest in the exploration permits comprising the Cap Boujdour Offshore
block. Cairn will pay 150% of its share of costs of a 3D seismic survey capped at $25.0 million and one
exploration well capped at $100.0 million. In the event the exploration well is successful, Cairn will pay
200% of its share of costs on two appraisal wells capped at $100.0 million per well. Additionally, Cairn
will contribute $12.3 million towards our future costs and, upon completion of the transaction,
$0.6 million for their share of costs incurred from the effective date of the contract through
December 31, 2013. Completion of the transaction is subject to customary closing conditions, including
Moroccan Government approvals. After completing the transaction, our participating interest in the
Cap Boujdour Offshore block will be 55.0% and we will remain the operator. The Moroccan national
oil company, ONHYM, has a carried 25% participating interest. We are required to pay a 10% royalty
on oil produced in water depths of 200 meters or less (the first 300,000 tons produced are exempt from
royalty) and 7% royalty on oil produced in water depths deeper than 200 meters (the first 500,000 tons
produced are exempt from royalty). These royalties are to be paid in-kind or, at the election of the
government of Morocco, in cash. A corporate tax rate of 30% is applied to profits at the license level
following a 10-year tax holiday post first production, if any. The Cap Boujdour Offshore block
comprises approximately 7.35 million acres (29,741 square kilometers) (See ‘‘Item 1A. Risk Factors—A
portion of our asset portfolio is in Western Sahara, and we could be adversely affected by the political,
economic, and military conditions in that region. Our exploration licenses in this region conflict with
exploration licenses issued by the Sahrawai Arab Democratic Republic.’’) The exploration term of the
Cap Boujdour Offshore Permits, beginning on September 5, 2011, is eight years and includes an initial
exploration period of one year and six months, which was extended for one year to March 5, 2014,
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