FELLOW S HAREHOLDERS
CON T IN UE D
exploration portfolio. Today, Kosmos is a
strong company entering a new era and
we are more focused than ever on what
creates value.
With Brian Maxted continuing to lead our
activities in this crucial area, I am confident
we will remain focused on our disciplined,
rifle-shot approach to exploration.
Maximizing the Value of Our
Development Assets
Becoming a Partner of Choice
Our assets in Ghana embody our proven
strategy and form the foundation from
which we expect to grow our business. Jubilee field, the jewel of our development
portfolio, produced an average of nearly
100,000 barrels per day of oil in 2013, with
our share approximately 24 percent. With
our partners and in support of the Jubilee operator, we are continuing to focus
on de-bottlenecking the Jubilee floating
production, storage and offloading vessel
(FPSO) to maximize production, as well as
advancing plans for full field development.
The plan of development for the TEN project, which will combine production from
the Tweneboa, Enyenra and Ntomme fields,
was approved by the Government of Ghana
last year. Since then, we have taken steps
Our core capability as
a successful explorer in
frontier and emerging
basins continues to set us
apart in a highly
competitive environment.
to advance the project. TEN is currently expected to require drilling and completion
of up to 24 development wells, several of
which have already been drilled during the
exploration and appraisal periods. We anticipate that TEN will deliver first oil in 2016.
In the Greater Jubilee area, we are continuing to mature our appraisal and development plans for the Mahogany, Teak and
Akasa areas, which we believe will ultimately be tied back to the Jubilee FPSO. Completing our appraisal by the end of 2014
remains our goal.
Maintaining Our Financial Strength
With improved performance and year-overyear production increases at Jubilee during
2013, Kosmos reached its strongest financial
position since becoming a public company.
At the end of the first quarter 2014, total corporate liquidity was $1.5 billion.
Maintaining our financial strength is a key
part of our business strategy as it enables
Kosmos to internally fund its world-class
exploration agenda, as well as its development and growth programs in Ghana. With Jubilee generating considerable
cash flow and our existing liquidity, we are
well-positioned to execute our strategy as
a self-funded explorer — a status that sets
Kosmos apart from many peer companies
in the industry.
Delivering Exploration Success
Our core capability as a successful explorer
in frontier and emerging basins continues
to set us apart in a highly competitive environment. At a time when the industry’s success rate in deepwater exploration is below
historic norms, Kosmos is moving to open
new basins in areas that haven’t been drilled
or may have been previously overlooked or
misunderstood. Through deep expertise, a
willingness to think differently about what
is possible, and a disciplined approach, we
have built and continue to expand a worldclass exploration portfolio with multi-billion
barrel potential.
After successful farm-outs of our blocks
offshore Morocco and Western Sahara in
2013 to BP and Cairn respectively, we have
started a multi-well drilling program which
will extend over several years. In addition,
we continue to process and interpret data
from 2D and 3D seismic surveys in various
license areas, including offshore Morocco,
Mauritania, Suriname and Ireland. Early results are encouraging as we deepen our understanding and mature each area toward
the drilling stage.
In today’s world, being a great explorer with
deep technical expertise isn’t enough to be
successful. At Kosmos, we recognize that
we must be as good above ground as we
are below ground to earn the respect and
trust of host governments, the communities
where we operate, and other stakeholders
whose lives may be affected by our work.
Our goal is to be viewed as a pre