Richard Evansheadlinxe from Those Earliest Meetings, Mr
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osmos energy is an international contemplative. The President asked about developing oil and gas company that is small by in- the gas independently of Senegal, but I explained why dustry standards, employing 380 people that approach would be too costly and take far too worldwide (compared to roughly 70,000 long for the benefits to be felt by his country.” K each at Exxon and BP). But Kosmos Mr. Inglis recalls a period of silence. Then the boasts an outsized ability to find hydrocarbons— President said that Kosmos could continue with the kosmos energy the chief components of petroleum and natural project. “But he stressed transparency was essential,” gas—in places where other companies have already discovered a Mr. Inglis says. “We had to be clear about our inten- searched unsuccessfully. massive natural tions. No playing games. Deliver on commitments.” Finding these hydrocarbons is as difficult and gas field off the After news of the initial discovery was public, complex as you might imagine. Yet developing coast of West Mr. Inglis went to Dakar to see the President of these hydrocarbons—getting them out of the Africa. There was Senegal, Macky Sall, at the presidential palace. “He earth, essentially—might be an even greater chal- one significant [President Sall] was resplendent in a flowing white lenge. Not because of the engineering, but rather obstacle: It sat boubou, surrounded by an entourage of advisors. the business diplomacy required. If the companies on the maritime He’s a geologist by training and former head of the and countries involved in a project can’t agree on boundary of two national oil company, so he reveled in the technical the economics and particulars, then the hydrocar- countries that details of the discovery and our plans for future ex- bons remain untapped. BXXETXSS ploration. But he was similarly cautious about the had once fought a Diplomacy, in other words, often acts as the cru- border war. CEO prospect of developing the gas jointly.” cial bridge between the discovery of hydrocarbons richard evansheadlinxe From those earliest meetings, Mr. Inglis says it andrew inglis and their valuable development—and in 2015, became clear that “if we wavered from the notion Kosmos Energy had to build that bridge between tells the story of 50/50 benefit from a 50/50 asset, it would have Mauritania and Senegal, two countries that had to Brunswick’s killed any chance of cooperation. Parity would fought a border war less than 30 years before. stuart drive the project; imbalance would destroy it.” In 2011 Kosmos’ geologists and geophysicists donnelly and Citing the significant upfront costs—it takes sev- looked at the results of more than 50 unsuccess- andrew von eral billion dollars to get a project like this going— ful wells that had been drilled offshore Mauritania. kerens. and the years that it would take before the project Previous exploration efforts focused on shallow generated revenue, Mr. Inglis saw a major part of water relatively close to the coastline and in on- his role as “being clear on what we could and could shore areas, but Kosmos hypothesized the wells had Atlantic not deliver, keeping everyone grounded and fo- been drilled in the wrong place: Pre-historic river Ocean cused even as the local media pressured us to make systems had pushed hydrocarbon-rich reservoir AHMEYIM-2 Mauritania promises about revenues and returns.” ✶ sands further offshore. ✶ With the support of both President Abdel Aziz Kosmos acquired several blocks offshore Mau- Mauritania TORTUE-1 and President Sall, Mr. Inglis and his team formed RESERVOIR Senegal ritania, where 2D and 3D seismic surveys later a working group comprised of representatives showed a large, promising geological structure— ✶ TORTUE Senegal from the national oil companies, the ministries of GUEMBEUL-1 the kind capable of supporting hydrocarbon reser- energy, and Kosmos—an uncommon move in the voirs. This structure appeared to extend across the industry. “We didn’t want it to seem that a foreign maritime boundary from Mauritania into Senegal, oil company was dictating how the project should where Kosmos acquired further exploration blocks. of GOODWILL proceed,” says Mr. Inglis. “We wanted to be trans- Drilling its first exploration well offshore Maurita- parent, and we wanted them involved.” nia in early 2015, Kosmos found the largest natural markable feature about Tortue: It was split with borders. “Everything hinged on cooperation,” says Discovered by Kosmos Over a period of three years, the group met month- gas field offshore West Africa in history. almost geometric precision between the maritime Mr. Inglis, who has spent more than three decades Energy, the largest ly, rotating between Nouakchott, Dakar and Paris. natural gas field ever Over the following 18 months, it drilled five ad- boundaries of the two countries. working in the oil and gas industry. found offshore “These were direct talks handled by the prima- ditional exploration and appraisal wells, including Despite the discovery, there was no guarantee “After the initial discovery in 2015, I traveled to West Africa is called ries. No middlemen to explain how things needed two in Senegal. All were successful. Kosmos would recoup the $675 million it had in- Mauritania to deliver the news to President Abdel Tortue, a field almost to be done. The early meetings were friendly but perfectly split in half by The largest known deposit, Greater Tortue Ah- vested to explore and appraise the fields—let alone Aziz, who was on a campaign stop in Kaedi, a small the maritime borders of formal,” says Mr. Inglis. “The Mauritanians and meyim, “contains at least 15 trillion cubic feet of realize a return on the investment. The gas be- desert city not far from the Senegalese border. I had Mauritania and Senegal. Senegalese didn’t know if they could trust us. We Above is the drillship gas, enough to generate billions of dollars of export longed to the respective countries. Since the largest to helicopter across this vast expanse of desert from which made the offshore felt the best way to earn that trust was to be trans- revenue and is of a scale that would meet the UK’s deposits were distributed so evenly between them, the capital Nouakchott to get there. I met the Presi- discoveries. parent. We told them up front what our economic total natural gas demand for roughly five years,” the only economically viable option was a joint dent in the governor’s mansion as crowds gathered returns needed to be for an investment of this says Kosmos Energy Chairman and CEO Andrew project between Mauritania and Senegal, not sepa- outside, waiting to see him. I expected the President size—we actually gave them our economic model. Inglis. In addition to its size, there was another re- rate developments on either side of their maritime FUCHS THOMAS ILLUSTRATION: to be ecstatic at the news, but he was actually reserved, And we showed them what we were deliberating 76 brunswick review · issue 18 · 2019 brunswick review · issue 18 · 2019 77 RESERVOIR OF GOODWILL on from a technical perspective and asked them to progress was steady but fragile; one misstep, we weigh in.” ” PROGRESS knew, could upset everything.” Soon, Mr. Inglis says, a bond formed among WAS STEADY That stumble seemed to have arrived in January the group—one that would have seemed improb- 2018 in the form of a major diplomatic incident: able from the outset. “They asked after each other’s BUT FRAGILE; a skirmish between Senegalese fisherman and the families, showing off photos of newborn sons and ONE MISSTEP, Mauritanian navy that resulted in a tragic fatality. daughters. They traded friendly jabs over the re- Complex negotiations between Mauritania and sults of English Premier League matches. And the WE KNEW, Senegal ensued on the thorny subject of fishing Mauritanians and Senegalese teased my team mer- COULD UPSET rights. At the same time, both Presidents were con- cilessly for their bad attempts at French while si- sidering how to progress the project and their views multaneously praising their efforts to learn.” EVERYTHING.” on the ICA. This led to a Presidential summit in From these meetings it emerged that neither Nouakchott a month later, where President Sall and country would accept the other being chosen as the President Abdel Aziz signed the ICA—a move that location and operator of a large onshore gas pro- helped ease tensions enough to allow negotiations cessing plant. To resolve the problem, the working on fishing rights to continue. group agreed to use an innovative development Kosmos and BP announced a final investment concept that seemed to embody parity: a floating decision just before Christmas last year. “The proj- liquefied natural gas facility on the maritime bor- ect will be the world’s fastest LNG development der between the two countries. That near-shore from discovery to first production, which is expect- site would be roughly 10 kilometers from the coast, ed in early 2022,” Mr. Inglis says. “And we’re plan- visible at night from both countries—a symbol of ning to expand production; Tortue will produce their cooperation. only a fraction of the overall reserves we believe to The near-shore development scheme made sense exist there.” practically as well as politically. “It represented the Unlocking that tremendous potential will re- fastest and most competitive way for the two coun- quire the same commitment to building relation- tries to begin initial LNG exports and deliver gas ships and maintaining transparency that made the for power generation, a key eco- project possible in the first place. nomic factor for both countries,” “As we continue to do business in Mauritania and Mr.