Arbitration rules in favor of BP as sole buyer of Kosmos Energy Senegal LNG project By Reuters

By Marwa Rashad

LONDON (Reuters) – Kosmos Energy (NYSE: ) said on Tuesday a Paris-based arbitrator had ruled in favor of BP (NYSE: ), barring Kosmos from selling to third parties liquefied petroleum gas from the Greater Tortue (GTA) project off Senegal and Mauritania . .

LNG is key to BP’s strategy and wider energy transition plan. The energy major has managed to establish a significant LNG portfolio around the world, including Sub-Saharan Africa, which is set to become a significant source of LNG exports, with Nigeria, Angola, Cameroon and Equatorial Guinea already delivering large volumes.

Last year, Kosmos Energy, a US-listed oil and gas exploration company, and BP Gas Marketing, a subsidiary of BP, sought arbitration from the International Chamber of Commerce over planned LNG sales from Phase 1 of the GTA project .

The camera informed Kosmos Energy Ltd that a final, binding ruling prohibits it from selling LNG cargoes to third parties for the duration of the LNG sales contract, which has an option to expire in 2033, Kosmos said in a statement.

The final award does not change the terms of the LNG sales agreement and is not expected to have an impact on Kosmos’ long-term prospects and financial condition, the statement said.

BP, which owns a 56% stake in GTA, is the operator of the project and its subsidiary is the sole buyer of its 2.5 million metric tons per year under a 20-year contract.

In November 2023, BP said the project was 90% complete and would start in the first quarter of 2024, slightly later than originally planned.

On Tuesday, Kosmos CEO Andrew Inglis told a BloombergNEF conference in London that the GTA project should begin by the end of the year. Kosmos has a 26.8% stake in the project.

BP, Shell ( LON: ) and other energy companies have also been in a legal battle with Venture Global LNG, accusing the LNG producer of denying it and other customers access to supplies while exporting the superheated gas worth of more than 18 billion dollars, according to the data. a filing with US regulators.