Kosmos Energy II

completed

IFC’s previous support for Kosmos Energy (“Kosmos” or the “Company”, IFC project # 27550) and Tullow Oil (#27918) helped Ghana achieve first oil production from the Jubilee oil field in Ghana at the end of 2010. The key elements of Kosmos’ business plan are: (i) to complete the development of the Jubilee oil field in Ghana which commenced oil production on November 28, 2010; (ii) complete the appraisal and development of its other hydrocarbon discoveries offshore Ghana. Additionally, Kosmos plans to appraise its portfolio of offshore exploration prospects in Ghana. Over the longer term, Kosmos plans to conduct exploration work on its existing inventory of other licenses in West Africa and to replicate its exploratory success through new ventures in other regions of the African continent. To fund these activities, Kosmos has tapped the equity and debt markets. This included first raising a US$2 billion bank facility to restructure its existing debts (including IFC’s prior loan), then taking the Company public to access additional equity, and finally syndicating the bank facility. The first phase of the debt facility and the IPO are now complete, and Kosmos and the commercial banks have launched the syndication phase for which they are seeking IFC’s support and participation. IFC’s proposed investment would be a $100 million corporate loan, which is primarily targeted for Kosmos’s capital expenditure in Ghana. Kosmos’s activities in other parts of West Africa are in the early stages of exploration, thus this ESRS will focus on the Ghana activities.