News wire — Oil and gas producer Kosmos Energy said on Wednesday it agreed to sell certain exploration assets in Africa and South America to a unit of Royal Dutch Shell for up to $200 million.
Shell will acquire the company’s participating interest in blocks offshore São Tomé and Príncipe, Suriname, Namibia and South Africa, Kosmos said in a statement.
Kosmos said it plans to use up to one-third of the initial sale proceeds of $100 million to test two high-quality infrastructure-led exploration prospects in the Gulf of Mexico.
Dallas, Texas-based Kosmos said it expects to realize about $125 million in total savings across capital expenditures over the next two years after the sale.
(Reporting by Shanima A in Bengaluru; Editing by Devika Syamnath)