(Ecofin Agency) - Kosmos Energy has announced that it has signed an agreement with Galp Energia to farm out 20% non-operated stake of its interest in Blocks 5, 11, and 12, offshore Sao Tome and Principe.

Under the terms of the agreement, Galp will pay a fair share of Kosmos’ past costs on the 3D seismic survey over blocks 6, 11 and 12, which is anticipated to commence in Q1 of 2017.The transaction, which is expected to be finalized before the end of the year, is subject to ANP and government approval as well as other customary final conditions.

The U.S.-based Oil and Gas Company joined forces with Oando Energy’s subsidiary, Equator Exploration, to secure ownership of Blocks 5 and 12 in the Gulf of Guinea in April 2016 while Block 11 rights were transferred to Kosmos by ERHC Energy, in October 2015.

Upon the finalization of the acquisition, Kosmos would continue to be the operator of every block. In block 5, the company will hold a 45% interest, Galp and Equator will hold 20% each while ANP will hold the remaining 15%, Offshore Energy Today reports.

On Block 11, Kosmos holds 65%, Galp and ANP will hold 20 and 15% interests respectively. While in block 12, Kosmos will hold a 45% stake, Galp, Equator, and ANP will hold a 20, 22.5, and 12.5% interests respectively.

Anita Fatunji