Kosmos Energy has closed its Gulf of Mexico loan facility with Beal Bank USA and Trafigura Trading, media reports said. In June, the oil and gas company had established a crude oil prepayment agreement with Trafigura for production in the US Gulf of Mexico.
The Gulf of Mexico loan facility has an interest rate of 6 percent. The interest rate increases Kosmos Energy’s borrowing capacity by $50 million from the initial prepayment agreement and extends tenor to five years.
Neal Shah, Kosmos Energy’s Chief Financial Officer said: “The closing and syndication of the Gulf of Mexico facility enhances the company’s strong liquidity position with access to low-cost, flexible financing. Along with free cash generated by our low-cost production assets and proceeds of the recent Shell transaction expected this quarter, the company’s balance sheet is expected to strengthen into 2021.”
It is reported that Shell will acquire Kosmos’ interest in blocks offshore São Tomé & Príncipe, Suriname, Namibia, and South Africa. In September, the oil and gas company had agreed to sell a portion of its frontier exploration asset interests to Shell for $200 million, media reports said.
The company said that following the close of its Gulf of Mexico facility it had nearly $650 million of available liquidity. Kosmos Energy is a deepwater independent oil and gas exploration company with key assets in Ghana, Equatorial Guinea and the US Gulf of Mexico.