Kosmos Energy Ltd.

Good day, everyone. Welcome to Cosmos Energy's second quarter 2026 conference call. As a reminder, today's call is being recorded. At this time, let me turn the call over to Jamie Buckland, Vice President of Investor Relations at Cosmos Energy.

Thank you, Operator, and thanks to everyone for joining us today. This morning we issued our second quarter 2026 earnings release. This release and the slide presentation to accompany today's call are available on the investors page of our website. Joining me on the call today to go through the materials are Andy Ingalls, Chairman and CEO, and Neal Shah, CFO. During today's presentation we will make forward-looking statements that refer to our estimates, funds and expectations. Actual results and outcomes could differ materially due to factors that we note in this presentation and in our UK and SEC filings. Please refer to our annual report, stock exchange announcement and SEC filings for more details. These documents are available on our website. At this time, I'll turn the call over to Andy.

Thanks, Jamie, and good morning and afternoon to everyone. Thank you for joining us today for our second quarter 2026 results call. I'll begin today's call by reviewing the progress we've made against the four 2026 goals that we laid out at the start of the year before giving an update on each of our business units. I'll then hand over to Neil to talk about the financials before I wrap up the closing remarks. We'll then open up the call for Q&A. Starting on slide three. When we released our full year 2025 results in March, we laid out four key objectives for Cosmos in 2026, which is shown on the slide. I'm pleased to say in the first half of the year, we've made excellent progress across all four. We've grown production from our core assets, namely Jubilee and GTA. We've delivered significant absolute and per BOE cost reductions year on year with a specific focus on operating costs. We've delivered a meaningful reduction in net debt already this year and are making good progress towards hitting a 20% reduction in net debt, a target we increased with our first quarter results in May. And we've continued to advance our high-quality growth portfolio, particularly in the Gulf of America, with minimal capital input. Through these actions, we're delivering a stronger and more valuable cosmos. A company with high production, lower costs and lower debt is more resilient to future price volatility with significant upside from our deep hopper of future growth opportunities. I'll now go into more detail as we move through the slides. Starting with Ghana on slide four. We've seen a lot of positive progress in Ghana this year with an active drilling campaign that is delivering towards the upper end of our expectations, demonstrating Jubilee's potential. We've used the chart on this slide for the last few quarters to highlight the ramp-up in Jubilee production since the start of the current drilling campaign in the second half of 2025. Since we reported first quarter results in May, two new producers have come online, J76 and J77. The final producer well of the campaign, J50, is the completion of a previously drilled well and is expected to start up in the coming days. The J50 online we expect Jubilee gross production above 90,000 barrels of oil per day. J76 in particular came in at the top end of our expectations and based on performance so far is the best world we've seen at Jubilee in over a decade. The well is an example of the upside potential of the asset and shows there is a lot of future value left to play for, particularly as we start to integrate the results of the 2025 OBN seismic into our future well planning. With seven months of production, we have a robust track record that underpins our full year guidance for Jubilee, which remains unchanged at 70,000 to 80,000 barrels of oil per day. The performance of the latest wells continues to support the upper end of this range. An important takeaway from the chart at the top of the slide is the correlation between activity and performance. During periods of drilling, high FPSO, uptime and sustained water injection, the field has performed well. We are therefore working closely with the operators to secure a rig for the 27-28 drilling campaign for up to 10 wells with the objective of starting in mid-2027. This campaign will benefit from both the fully processed 4D and fast-track OBN seismic, which will help refine and high-grade future well locations and give the partnership the best opportunity to maximize future reserve recovery. So, in summary, it's an exciting time in Ghana. Jubilee, our highest margin production, is performing strongly at a time of higher oil prices, helping us to deliver our debt reduction targets for the year. And looking forward, with the benefit of new technologies, we're working closely with the operators to plan and progress next year's drilling campaign. Turning to slide five. GCA has continued to perform well this year. In the second quarter, gross LNG production was around 2.65 million tonnes per annum equivalent, in line with our expectations. Nine gross LNG cargoes were lifted during the quarter at the upper end of guidance. For the full year, our guidance of 32 to 36 gross LNG cargoes remains unchanged, with 18.5 listed in the first half of the year. During the second quarter, one condensate cargo was jointly listed by Cosmos and the NSCs, with around 300,000 barrels net to Cosmos. An additional condensate cargo is expected late in the third quarter, which is also expected to be assigned to Cosmos and the NSCs, with around 400,000 barrels net to Cosmos. Due to the seasonality that we've flagged in the past, Daily LNG production expected to remain slightly lower during the summer months because of the warmer sea and air temperatures. Volume should then pick up again later in the year as cooler temperatures return. On costs, we remain on track to hit our 50% reduction target for OPEX for MMBTU this year and Seascope for further reduction in 2027. On the phase one expansion with domestic gas to power, which should materially enhance project returns, there's been good progress on the ground in both Senegal and Mauritania so far this year. In Senegal, the land has now been cleared for the onshore section of the northern segment of the gas pipeline, which will connect GTA to the 250 megawatt Gandon power station being built near St. Louis. The photographs on the top of the slide show the gathering in China in May to celebrate the completion of the fabrication of the onshore pipeline before it was shipped to Senegal. The pipeline is due to arrive in country in the coming days after taking a longer route than initially planned to avoid the Middle East. In Mauritania, the country just signed a 25-year agreement with a Saudi power company for the development, finance, construction and operation of a new 230-megawatt gas-fired power plant in Indiago, which is expected to use gas from the GTA field. These developments in Senegal and Mauritania are important steps for both countries to enhance domestic Electricity generation, reduced reliance on imported fuels, and support the country's long-term energy security and industrial development. Turning to slide six. Production in the Gulf of America for the second quarter was in line with expectations, with continued solid performance for our operated Oddjob and Kodiak fields. On Winterfell, the number five well was temporarily abandoned by the operator due to casing issues encountered during drilling. Turning to the growth side of the business, following final investment decision in March, the Tiberias project is making good progress. Last week, we successfully completed a highly competitive farm down on Tiberias, bringing Navitas into the project as a 33.33% partner. Following, the farm in Cosmos will remain as operator with a 33.34% interest rate. The owner and operator of the nearby Lucius facility will have a 33.33% interest. The farm-in proceeds are a mix of upfront cash, carry for future development capex, and future milestone payments. We expect the carry element to cover all of our Tiberius capex in 2026 and fund our share of the development through the first half of 2027. Tiberius is a low-cost, high-margin development. We now have an aligned partnership to move it forward, the first thought expected in the same half of 2028. I'll swear in the Gulf, as previously discussed, we entered into a strategic exploration alliance with Shell earlier in the year. As part of the alliance, we exchanged interests across multiple blocks across the Norfolk Plain, which houses several material exploration prospects. Shell plans to start drilling the first of these, Trailblazer, in the first quarter of 2027. Trailblazer is targeting around 200 million barrels of oil, gross equivalent resource, and Cosmos is designated as a development operator in the event of success. I'll now turn it over to Neal to take you through the financials.

Thanks, Andy. Turning now to slide 7, which looks at the financials for the second quarter in detail. As Andy mentioned, it's been a strong quarter for the company with production around 12% higher year on year, driven by the new wells coming online at Jubilee and the ramp up at GTA. Realized price is higher year on year, reflecting the elevated pricing seen in the second quarter following the war in the Middle East. As flagged last quarter, some of the pricing of our production has a lag impact, so we should also see some benefit of the higher 2Q pricing in the third quarter. On operating costs, we've seen a material reduction in both absolute and unit costs year-on-year. Absolute operating costs in the second quarter are around 25% lower year-on-year, consistent with our ongoing efforts to drive down costs across the business. With the EG disposal, we've now sold our highest cost barrels, so we'd expect absolute operating costs and costs per unit to continue to fall through the second half of the year. The rest of the cost lines for the quarter were in line with guidance, but it's worth highlighting the interest expense reduction, which we expect to continue as we deliver on our debt reduction targets for the year. In terms of guidance for the third quarter and the full year 2026, we have updated the table in the appendix to reflect the Equatorial Guinea sale, which is completed in June. The two main line items that have been updated are production and operating costs. On production, the midpoint of the range has been moved down around 2,500 barrels of oil equivalent per day net, taking out the EG barrels for the second half of the year, with the remaining portfolio on track following the strong performance year to date. With slightly lower production post the EG sale and significantly lower costs, we remain on track to reduce OpEx per barrel by around 35% in 2026. Turning to slide 8, we've had an active first half of the year, carrying out several important initiatives to drive a meaningful reduction in both debt and leverage, clear near-term maturities, and increase liquidity. The successful GTA bond largely addressed the 2027 bond maturity, and we intend to pay the remaining stub with free cash flow. We paid down approximately $420 million of debt through free cash flow, the equity raised, and proceeds from the EG sale. And we ended the quarter with over $500 million of available liquidity. This progress is recognized by the rating agencies, with both S&P and Fitch upgrading the company to B-, reflecting the work we've done to enhance the balance sheet in the first half of the year. Looking at the second half of the year and the things that remain on our to-do list, we've commenced discussions with the lending banks around amending and extending the RBL, and we expect that process to close during the fourth quarter, targeting a facility size of around $1.2 billion. As we make further progress on the capital structure, We will also look potentially to repay the 2028 notes later in the year. And lastly, we'll continue to take advantage of higher prices to layer in more hedges for 2027. With continued execution, we expect leverage to fall further towards two times by year end, a pretty significant turnaround in only 12 months. So in summary, we've worked hard in the first half of the year to reduce absolute debt and leverage while improving liquidity. There's more to do in the second half, and we are being proactive and methodical to get it all done. With that, I'll hand it back to Andy.

Thanks, Neal. Turning now to slide nine to conclude today's presentation. As stated in my opening remarks, we have four key objectives for 2026. Grow production, lower costs, reduce debt, and advance our quality growth portfolio with minimal capex in 2026. This slide shows the progress we've achieved year-to-date against those goals. Production for the first half of 2026 is up 18% versus the same period last year. Absolute operating costs are down 24% in the first half of 2026 versus 2025. We deliver a reduction in net debt around 50% versus year-end 2025. and we are advancing our growth portfolio with the Tiberius FID in Farmdale, continuing progress on GTA expansion and the exploration alliance with Shell in the Gulf of America. We're working hard to deliver a stronger, more valuable cosmos and look forward to delivering on our full-year targets to support long-term value creation for our investors. Thank you, and I'd now like to turn the call over to the operator to open the session for questions.

Thank you. We will now begin the question and answer session. If you'd like to ask a question at this time, please press star, then the number one on your telephone keypad to raise your hand and enter a cue. If you'd like to withdraw your question at any time, you can press star one again. Pause just for a second to compile your answer. Our first question comes from Charles Mead with Johnson Rice. Your line is open.

Yes, good day to you, Andy, and to the rest of your team there. I'd like to ask about the J76 well, and if you could characterize for us the setting of that well. I'm thinking along the lines of, is it Updip of one of your previous strong producers in a known fall block or is it maybe on the other end of the spectrum? Maybe it's in some fallback that you hadn't been connected to. I'm really trying to understand what the nature of the remaining opportunity for you is. Maybe not just the nature of the opportunity in the next couple of years in Jubilee for you guys.

Yeah, yeah, thanks, Charles. Look, you know, clearly J76 has been a very strong well. You know, I think actually one of the best wells we've drilled in over a decade. I think ultimately we're in the core part of the field and we've used the latest 4D to be able to identify some opportunities that are in that core part of the field that are up-depth and being unswept. So the other interesting thing about 76 is we have actually picked up some deeper horizons as well. So there's a combination of sort of what I would say the core areas of the field we've looked at in the past plus some deeper opportunity. So, you know, I think in total it sort of demonstrates two things. You know, there are significant opportunities in the field where we have oil that has been bypassed by the current drilling program and injection patterns. and therefore can provide wells that have both significant resource and the ability to drill a well where you can have a secondary target deeper that introduces additional resource. And I think it's those two elements that are important as we go forward. I think there's significant bypassed oil opportunities and I think there'll be continuing opportunities to find Potentially deeper horizons that we haven't accessed in the past.

The value that you achieved for your sell-down of 70% there.

Thanks for looking at this this morning. I'll pass it over to Neal who can give you the full translation.

Yeah, Charles. Hi. Yeah, so if you just take the math simply in terms of what we got for what we've sold, it implies a gross valuation for Tiberius of around $250 million as of January 1st, 2026. And and, you know, again, we've got sort of a total of a bit under $45 million of consideration in between sort of upfront cash carry and milestone payments. And so, again, I think a very good result from the team in executing a really good competitive farm down process. And we're excited that we have the right partnership for the future.

That's exactly the kind of details. To be clear, that $250 million gross valuation Does that include the future continued payments?

No, that's the gross value of the asset. So you'd add our net plus the value of the carriage.

Okay, thanks. Great, thanks, Charles.

Your next question comes from Bob Brackett with Bernstein Research. Your line is open.

Good morning. Question, a bit of a follow-up, I suppose. Can you talk about the Logan discovery that you all picked up and is now part of this Veritas JV? Maybe what are the volumes in place and what is the future plan to sort of bring that part of Tiberius into production?

Yeah, thanks, Bob. I'll pass it over to Neil. He's been handling that. Yeah.

Hey, good morning, Bob. Yeah, so there's, you know, We've just got updated seismic over Tiberias. There's a good discovery well that's already on Tiberias that was drilled, I think. 10 plus years ago. And so whether it's in the tens of millions of barrels of resource, but we do look at it as a potential add-on into the sort of greater Tiberias area. So we're looking at a handful of wells in Tiberias in terms of different fault blocks and ultimately connecting Logan into the system. But yeah, so it's a potential well or two into that area to add some additional recovery.

Very clear. And a follow-up, I imagine you're frustrated with Winterfell either by the operator, by the reservoir, by something. Is there recourse there or do you think you've finally tackled some of the challenges there?

Yeah, and so just on, you know, again, I think just from a Winterfell basis, yeah, I mean, I do think, you know, ultimately there's a big prize in terms of reserves there. You know, we've drilled a number of wells. There's good pay But we have been disappointed by the drilling performance on what are relatively routine operations and the additional cost that have been incurred as a result. Hence the pause on activity to fully understand what's causing the issues. There hasn't been a daily impact to production, but we do want to make sure those drilling issues are resolved before any more capital gets spent on the project. Yeah, it has been frustrating, but it's something the team's working hard on with the operator to make sure it gets comprehensively resolved.

Very clear. Thank you. Thanks, Bob. Your next question comes from the line of Neal Mehta with Goldman Sachs. Your line is open.

Yeah, good morning, team, Andy, Neal. I wanted to first congratulate you guys on the progress on your net debt reduction, 15% since you're in 2025. And so, Neal, maybe the first question is for you. On slide eight, you want to walk us through the progress that you guys have made and what your plan is through the balance of the year to hit 20% or above.

Yeah, Neal, good morning and thank you. Yeah, so it has been a lot of good work by the entire team to deliver a good first half in terms of almost $500 million of debt reduction in the first half of the year. We're at 2.5 and change. And then the goal would be to get closer to 2.4 by the end of the year. And again, I think from where we are from a production and cost perspective, we feel pretty good about the ability to get there even in a sort of lower commodity price environment. And that'll be the big variable that sort of exists between now and the end of the year. But yes, the balance of that difference, which is about, call it $150 million, is expected to be generated from free cash flow, right? And so again, I think we've delivered free cash for the last two quarters. The expectation is to do that as well, and that'll get us to sort of that net debt number of around 20% reduction year on year. And then in addition to that, again, I think we remain proactive in terms of just managing the maturity schedule. We've tackled the 26s first earlier this year. We tackled the 27s thereafter. We're working on the RBL at the moment, and then we'll tackle the 28s. Once we're sort of done with that, we have three years plus of runway without worrying about the debt in front of us. We'll continue to focus on free cash flow and managing that level down beyond the 20% reduction in 26. The strong financial performance is driven by sort of good operational backbone at the beginning. And so, you know, again, the focus on doing both things simultaneously to get to the right result.

Yeah, thanks, Neal. And then just the follow-up is on the unit cost at phase one. Again, year over year, there should be significant reductions in OPEX as we work through startup costs and you get more attention in Senegal. But just talk about where you stand in terms of the reduction in costs and then how does Phase 1 Plus fit into the equation? What could the cost trend down to on a multi-year basis as we try to dial in that number?

Yeah, I'll pick that up, Neal. You're correct. Clearly, we're getting the effect of two dynamics this year. We've clearly pushed volume up on GTA and the performance through the first half of the year has been very strong. We were targeting... You know, 32 to 36 cargoes. We did 18 and a half in the front end of the year. So, you know, the overall production level, you know, clearly strong. That, you know, obviously helped in terms of managing the unit costs. And we've also had the benefit of some of the final commissioning costs coming out. and then I think there's still improvement to make in the cost base in 27 with different operating models that we're discussing with BP and then you have the additional impact of increasing production. As we said in the past, you can add at least another 50% to the FPSO, the current throughput that's being supplied to the FLNG vessel for domestic gas. So that additional volume is going to have a significant impact on the unit cost because it comes with no additional cost. So I think, as we said in the remarks, the big agenda now, and it's an agenda that's deeply aligned with both countries in Mauritania and Senegal, is to push on with the supply of the domestic gas. We saw the progress, I think some pictures in the deck that showed the progress in Senacol in terms of getting pipe in the ground, you know, connection to the first off-take which would be the Gandon power station, and then in Mauritania the work that they've done with a Saudi developer for their power station. So, you know, that volumetric effect just simply then, you know, impacts the per unit cost. So I think we've got continuing growth in margin in GTA through that phase one expansion. And I think we're aligned with the governments in both countries in terms of how we deliver that.

Great. Thanks, Neal. Your next question comes on the line of David Round. The line is open.

Great.

Thanks, guys. Jubilee, I mean, the production side there has been really good. I guess I wouldn't mind if you could just touch on, please, and whether previous decline assumptions may change if that's been going well.

Thanks David, I think it's a really good question. Clearly our focus through the first half of the year has been on the drilling program and I think we've seen the impact of new data, the ability to influence then the selection of good wells and I think that selection then with good operator drilling performance has has led to the current levels that we're experiencing. So I think, you know, big check in the box there. I think when it comes to water injection, I'd say this is an area where there is an opportunity to do better. We did well in the first quarter, you know, a body's replacement, you know, around 130%, which is sort of what you need. That's what sort of world-class performance looks like. It hasn't been as strong in 2Q. It's been around about half that level, actually around 65%. Some of it was scheduled maintenance. Some of it was availability of the water injection pumps. So we're working really hard with the operator now to focus on that issue. and many more. as we take a timeout on the drilling program and then planned restart is around the middle of the year. We're making good progress on the rig contract. So I think we're clear about what we need to do and the back end of the year will be a strong focus on the water injection.

Okay, thanks Andy. In terms of the forward programme and the programme you're looking at next year, I mean, is it too early to think about how many of those might be injectors versus producers?

Yeah, it's a little early, David. You know, without being overly simplistic, I think we've Let's say in the core of the field we've got pretty good injection support. I'm talking more broadly now and the issue is not so much about needing new injection, probably more around getting the water in the ground actually. As we move out of some of the areas where the well density isn't as high, let's say as you move back into the eastern side of the field, JSE for instance, It will be more about pairing injectors and producers. So, you know, if you sort of haze through, you know, sort of you look through all of that, you know, there'll be a bias. I think the bias is still going to be more towards in injection. So more towards producers over injectors. But actually the injection well, you know, we're drilling at the tail end of this program. That's actually an injector that will provide some support for this year. But actually it's to support a future producer. Okay, so you're sort of getting the right balance there between injection and production. But I think, you know, the bias will still be that it'll be more heavily weighted to producers.

Okay, that's really helpful. Thanks, Andy.

Great, thanks, David.

Your next question comes from the line of Mark Wilson with Jefferies. The line is open.

All right, thank you. I'd like to ask a question about the U.S. Gulf, if I may start there. Great to see Tiberias farming completed. One well tieback initially, you speak to 100 million barrels there, reminds me of Winterfell. I imagine that 100 million is a kind of an area region. So I'm just wondering what you're targeting with that one well tieback in terms of recoverable reserves at Tiberias. And then same sort of question for Trailblazer. Great exploration opportunity. Just wondering what Cosmos' net share would be of that 200 million target. That's my first question, thank you.

Hey Mark, good morning. So with Tiberius, the 100 million barrels is sort of within Tiberius and then Logan would be sort of additional beyond that. But there are sort of, call it three fault blocks in Tiberius which we've penetrated one. But the first well is targeting around, call it 40 million barrels recovery. and you know again we've talked about sort of ten dollar F&D which is sort of a four hundred ish million slightly gross development cost all in so that sort of squares but once the infrastructure is in place that includes sort of the tie-in infrastructure so once that's in place then we can add the additional wells and get much production impact much sooner and so we'll sort of phase that on post post first oil. If I sort of take that to Trailblazer, similar sort of, that's a larger prospect. It's about 200 million barrels gross in terms of prospectivity. And we own about a third, a little under a third, 30% of the projects next to us, a little under around 60 million barrels. and so again pretty material prospect for us and again I think you'd expect it to be a multi-well development all in sort of if successful but in a similar sort of Cosmos fashion the idea would be bring the keep the first well on as a development well bring that online to put in the infrastructure and then bring in additional producers once it's tied back.

That's really appreciated, Neal. Thank you for that. If I could move on to GTA, because, you know, excellent to see the pipe on its way, goodness me, for the domestic power. I'm just wondering what flexibility you have on the pricing for that, or if that's part of the actual license agreements, that'd be the first point. And then secondly, a lot going on at BP. So just wondering if there's any discussions over further phases at GTA. Thank you.

Yeah, so the agreements we have in place, we get the equivalent net back of the FOB less the LNG processing fee. Because clearly you're not converting it into LNG, you're just delivering it as domestic gas. So it's the FOB equivalent for domestic supply.

And that's been agreed through for Phase 1 in terms of the gas price, Mark?

The point about that is the additional volume comes with the same economics as the LNG export. There's a lot going on in BP as you say. You know, obviously I don't have any insight into that or can't comment on what their sort of corporate objectives are, whether GTA is core or non-core. I think for us the most important thing at the moment is to sort of focus on the development of the asset and we continue to work hard with BP on that and aligned with states around the delivery of the domestic gas, whereas you say there's real progress being made.

Okay, and obviously the main one is the net debt coming down, which is, yes, a great to see, as has been commented by others, and RBL refinance in the second quarter. And Neil, you also mentioned looking to, I think you said, repay the 2028 bonds, that's the $400 million. That's what I understood correct, or is that a refinance of those targeted this year?

Yeah, no, good question, Mark. Yeah, so, you know, again, I think, you know, like I was trying to refer to say earlier, but this year we've tried to be really sort of methodical around how we sort of address the financing issues in the maturity schedule. And like I said, we've gone through the 26s earlier this year, paid the 27s with the Nordic bond. are working on the RBL at the moment, which is, you know, has, you know, matures in 29, but starts amortizing in 27. And then once that's out of the way, the next maturity for us to address is the 28th. And again, I think, you know, it's been good to see sort of the yields on the bond sort of return It's closer to normal. I mean, we'd expect as we continue to address the financial risk, get the debt down, we'll see a continued improvement in yields. And so it's something we're continuing to evaluate in terms of whether it's a repayment or a sort of from an opportunistic repurchase or just potentially refinancing those later in the year. It's something on the agenda, and as the market and the yields evolve, we'll continue to keep an eye on that.

Okay, understood. I'll hand it over. Thanks for this question.

Great.

Thanks, Mark. Appreciate it.

Your next question comes from the line of Christopher Bucky with Clarkson Securities. Your line is open.

Christopher from Clarksons here. So firstly, congratulations on another very strong quarter. I mean, operational executions continue to impress, so that's great to see. My first question is related to Jubilee and especially with the Jubilee production now tracking at or above the 90,000 barrels per day. How should we think about the sustainable production potential of Jubilee over the next quarters? Could this potentially influence the scope or pace of the 2027-28 growing campaign? So that's my first.

Yeah, no, Kristoff, that's, you know, it's a sort of good question. When you look at Jubilee, I think we know if you look at the 25-26 program, it's been a very successful program. It's certainly been supported by the new 4D, and I think that's enabled us to see a lot more opportunity in the field. I think it is actually worth commenting on, if you look at that overall program, You know, with payback of less than six months. So you want to get back to drilling as soon as possible. There are some logistical issues on that in terms of ordering. You know, long lead equipment, well heads, etc. But we're working with the operator to make sure we get back to drilling as soon as practicable. And that date is around the middle of next year. And we're pushing maybe to get there a little earlier. But I think that's sort of the... The current target. And then it's a fulsome program. Our objective is to drill up to 10 wells. Not only will we have the fully processed 40 at that point, but we'll also have early product from the OBN, which I think is going to be another step change in our ability to properly describe the opportunity set. Potentially some of the things that have been harder to image There are deeper. So I think that, you know, for us, we see ongoing opportunity and as we've said, I think, you know, consistently over probably the last 10 quarters, you need to do sort of three things to deliver that potential. You've got to get back to regular drilling, which I've talked about. You have to deliver high FPSO Uptime, which the operator has done so far this year. And you have to get the water injection operating so you get water in the ground. So as we look forward, we will see some decline clearly. There'll be a little bit of mitigation from the last water injection well. That's primarily to support a future well in 27. So we will see natural decline from the end of the program. which finishes at the end of this quarter through the fourth quarter, first quarter, second quarter and then back to drilling.

Thank you very much and also staying on Jubilee and the full year guidance you have highlighted that production is trending toward the upper end of guidance and you also had another welcoming online so assuming current operational performance continues should we think about ending the year toward the upper end of the production range and would that potentially allow you to exceed your targeted 20% net debt reduction for 2026?

Again, a really good question, and that's obviously our objective. We're working, again, it's about eyes down focus on the operational delivery. Again, as I've said, it's about picking the right wells, it's about then drilling them, it's about the delivery then. of the uptime. And I think the area that's really important now is water injection. Availability. But I think when you look at the overall suite of options within Cosmos, it's obviously, you know, GTA has been trending to the upper end of its guidance in terms of the number of cargos. You know, despite, you know, Winterfell 5, we've had strong performance in the Gulf of America, particularly from from Kodiak and Oddjob. So you put all that together, Christophe, and yes, you know, are we confident we're going to hit our numbers? You know, it's about a managed outlook across all of those production opportunities. And then finally, you know, it's about managing the cost base. We haven't talked about that much on the call. but this is a significant reduction in cost we've achieved in the first half of the year. Delivering the portfolio optimizations with the EG sale, the 10 FPSO repurchase, those are structural changes that are enduring. So that together with rigorous capital management and again I think we've talked about the Tiberius farm down, but then that again allows us to manage the capex through the back end of 26 and into 27. So in combination, you know, the three things, you know, production performance, cost reduction and capital management then underpin that debt reduction target.

Thank you very much. So just the last one if I may. Great, thanks. Yeah, you have briefly mentioned it already, but you are in ongoing discussions with the lending banks and have now also commenced that and you expect the amended RBL to be completed during the fourth quarter. Could you elaborate a bit on how those discussions are progressing and once the RBL is completed, should investors expect you to kind of Turn your attention towards addressing the 2028s or are those kind of two processes going in parallel?

Yeah, I think that's the right way to think about it, Christoph, in terms of just the series of events. Yeah, so we've kicked off the RBL process. Again, just for those of you who haven't been, this is the fifth time we go through an extension process on the RBL with a lot of the same banks who've been in there since I joined the company in 2011. So, yeah, it's a well sort of established program or process. We've started exchanging term sheets in terms of what that looks like, so we need to sort of finalize that. And, you know, clearly on the back of improved Jubilee performance, you know, in a constructive commodity price environment, we're well placed to sort of execute that here relatively quickly. But, yeah, I mean, I think as we get that complete, then, like I said, the next maturity on the list is the 28th, and that gives us a bit over three years of runway without any maturities to manage.

Thanks, Paul, for taking my questions. Great. Thanks, Gustavo.

Again, if you would like to ask a question, please press star then the number one on your telephone keypad to raise your hand and enter the queue. Your next question comes from Stella Cridge with Barclays. Your line is open.

Hi there everyone and many thanks for all the updates. Sorry to add a couple more questions on the refinancing side. Just wondered if you're still targeting 2032 and 33 as potential maturity dates of the new RBL and I was just wondering regarding the liquidity test that you would usually be tested on on the 28 bonds, how does that fit into the next few months in the RBL negotiation? Do you get a waiver or is that just kind of rolled into the whole process? That would be great, thanks.

Yeah, so, yeah, I mean, the chart on, I forgot what flight it is. Flight 8. Flight 8 is clearly illustrative, but in line with what we're working live. And so the idea is to get sort of the final maturity beyond The existing bonds and again we'd normally do it in a sort of six seven year time frame so that's kind of when the final maturity base would be but it generally starts amortizing after three years so the shape of the RBL won't be dissimilar to the shape that it's always always in and that essentially puts a sort of refinancing plan in sort of three years down the down the line to force another extension. So that's sort of, you know, again, business as usual from that perspective. And then, you know, same thing with the, you know, your question around sort of the liquidity test along with sort of redetermination. And so essentially we'll sort of all boil that in up into the refinancing. And so, you know, we'll probably won't have a, you know, a sort of formal fall of redetermination because generally, you know, again, I'm going into a little detail, but the RBL is always limited by the loan life, and so as you kick the loan life, you have full access to the facility, which keeps liquidity and keeps all the liquidity available to the company. So we'll do those sort of contemporaneously with the refi.

That's great. Many thanks for that. And if you don't mind me asking on Tiberius, Could you just remind us how much gross production would come from that first well? And I noticed you also mentioned a potential second well. It would be great to hear about that as well.

Yeah, and again, every well would be different. But the expectation is, again, I think a good modeling assumption, there's around 10,000 barrels a day gross per well. And again, we have up to 30,000 barrels a day of capacity. at Lucius, the facility. And so, again, the ability to accommodate multiple wells over time.

So, Pramani, thanks for that.

Great. Thanks, Stella. Since there are no further questions at this time, I would like to bring the call to a close. Thanks to everyone joining today. You may now disconnect your lines at this time, and thank you for your participation.