Kosmos To Boost Ghana Spending

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Kosmos Energy, the newly public Texas-based oil explorer, said it will spend $400 million to $430 million exploring for oil in Ghana this year, according to a Securities and Exchange Commission filing. In a previous filing, the company said it expected to spend $400 million searching for oil in the African nation in 2011.

Kosmos (KOS) said $260 million of the $430 million will be devoted to exploration and appraisal drilling. The company said it has procured additional capacity to drill the Cedrela-1 well west of the Makore prospect. Kosmos expects that well to be drilled by the end of the third quarter.

The news came on the same day that Kosmos was forced to declare force majeure to the government of Ghana and Ghana National Petroleum Corp. after the Marianas rig sustained damage off the coast of Ghana. That may delay drilling in the region, though Kosmos said it expects Marianas to be fixed or a replacement rig to be in place soon.

The rig is owned by Switzerland-based Transocean (RIG), the world's largest provider of offshore drilling services. Transocean expects it will take at least a week to tow and inspect the rig for damage, according to Bloomberg News.