Ghana license extension drives Kosmos Energy stock price up 16%

LootboxPhobia · 2026-02-20T19:16:27+00:00

Kosmos Energy stock rose 16% on Friday as the Ghana Parliament approved a license extension until 2040, supporting up to $2 billion in investment. The Jubilee oil field has an average daily production of over 70,000 barrels, and new wells will increase reserves. Additionally, the TEN oil field will significantly reduce operating costs. Liquefied natural gas projects in Mauritania and Senegal are performing well, and Kosmos also completed a $350 million bond issuance.

LootboxPhobia

2026-02-20 19:16:27

Abstract generation in progress

Investing.com – Kosmos Energy (NYSE:KOS) stock surged 16% on Friday after the Ghanaian Parliament approved an extension of its license for operations in Ghana, along with the release of positive production updates.

The Ghanaian Parliament officially approved the license extensions for the West Cape Three Points and Deepwater Tano oil agreements, which cover the Jubilee and TEN fields. The licenses have now been extended to 2040, supporting up to $2 billion in incremental investments.

The revised Jubilee development plan will add up to 20 wells to the field, and Kosmos expects Jubilee’s 2P reserves to increase. The license extension will also provide more natural gas from these fields for domestic power generation in Ghana.

At the Jubilee field, the J74 well, which began production in early January, is now fully operational, with a daily production of approximately 13,000 barrels of oil. Since February, the Jubilee field has averaged over 70,000 barrels per day. The J75 well is the first of five wells planned for drilling in 2026, has been drilled and found approximately 40 meters of net pay. It is expected to come online by the end of the first quarter.

For the TEN field, partners have signed a purchase agreement to acquire a floating production, storage, and offloading vessel (FPSO) for a total of $205 million, with Kosmos net paying about $40 million. This transaction is expected to significantly reduce operating costs starting in 2026, and it is scheduled to be completed by the end of the first quarter of 2027.

In Mauritania and Senegal, the Greater Tortue Ahmeyim liquefied natural gas project shipped 3.5 cargoes of LNG in January. The field’s average annual production since the beginning of the year is approximately 2.9 million tons of oil equivalent, exceeding its rated capacity of 2.7 million tons per year.

Kosmos completed a $350 million bond issuance in Norway in January and used $100 million to repay borrowings under its reserve-based lending facility.

This article was translated with the assistance of artificial intelligence. For more information, please see our Terms of Use.

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