Greater Tortue Ahmeyim (GTA) Domestic Gas Infrastructure Development

Senegal's government has initiated construction of the long-awaited onshore infrastructure necessary to utilize gas from BP's producing Greater Tortue Ahmeyim (GTA) offshore field for the domestic market. While GTA's Phase 1 currently exports all production as liquefied natural gas (LNG), the production sharing contract mandates supplying gas to the domestic market under Phase 1+. According to partner Kosmos Energy, with Phase 1 production fully ramped up and performing well, the partnership is now focusing on Phase 1+, which fully utilizes existing infrastructure for domestic sales in Senegal and Mauritania. Heads of terms for domestic gas sales are expected to be agreed in 2026.

Infrastructure and Financing

Senegal has started building an onshore power plant near St. Louis, the closest major population center to GTA. By around mid-2026, construction is expected to begin on a gas pipeline network to transport gas from the offshore GTA hub to shore for domestic power generation. It remains unclear how Senegal's cash-strapped government plans to finance these two facilities.

Phase 1 Production and Operational Performance

GTA is tapped by deepwater subsea wells sending gas to a floating production, storage, and offloading vessel. Liquids are offloaded to shuttle tankers, while gas feeds a floating LNG vessel moored behind a breakwater about 10 kilometers from St. Louis. In the first quarter of 2026, production averaged 2.85 million tonnes per annum of LNG, exceeding the FLNG vessel's nameplate capacity of 2.7 million tpa. Kosmos reported that cutting operating costs for Phase 1 remains a priority, with net operating costs per barrel of oil equivalent "on track" to fall by over 50% year-on-year, with further reductions possible.

Kosmos Energy's Financial and Production Results

Output from GTA helped Kosmos post a record average quarterly production of about 74,800 barrels of oil equivalent per day (boe/d) in Q1 2026, up 25% from early 2025, at an average operating cost of $19.7 per boe. Production from Tullow Oil's Jubilee and TEN fields offshore Ghana averaged 70,000 and 14,900 barrels per day of oil, respectively. Kosmos generated $371 million in revenues, with EBITDAX at $188 million, operating cash flow at $107 million, and free cash flow at $14 million. Net debt stood at $2.8 billion as of end of March 2026. Investors responded positively, with Kosmos' share price up almost 9% to £2.43 ($3.28).

Strategic Goals and Debt Reduction

CEO Andy Inglis stated that Kosmos set four goals for 2026: increase production from core assets, lower costs, reduce debt, and advance the growth portfolio with minimal capital. He noted operating costs were about 22% lower year-on-year and net debt was down 7% versus end of 2025. Due to ongoing momentum, Kosmos raised its full-year debt reduction target from 10% to about 20%. Despite high oil prices, Inglis reiterated that goals remain unchanged, directing excess free cash flow toward accelerated debt reduction and further strengthening the balance sheet. He emphasized that exposure to premium international oil markets positions Kosmos to capture value from current market dislocations.