By Marwa Rashad

LONDON (Reuters) – Kosmos Energy (NYSE:KOS) announced on Tuesday that a Paris-based arbitrator has ruled in favor of BP (NYSE:BP), prohibiting Kosmos from selling liquefied natural gas (LNG) from the Greater Tortue (GTA) project offshore Senegal and Mauritania to third parties.

LNG is pivotal to BP's strategy and broader energy transition plan. The energy giant has built a substantial LNG portfolio globally, including in Sub-Saharan Africa, which is emerging as a significant source of LNG exports, with Nigeria, Angola, Cameroon, and Equatorial Guinea already shipping large volumes.

Last year, Kosmos Energy, a U.S.-listed oil and gas exploration firm, and BP Gas Marketing, a BP subsidiary, sought arbitration from the International Chamber of Commerce regarding intended LNG sales from Phase 1 of the GTA project.

The chamber informed Kosmos Energy Ltd that a final, binding award prohibits it from selling LNG cargos to third parties during the contract period of the LNG sales agreement, which includes an option to end in 2033, as stated by Kosmos.

The final ruling does not alter the terms of the LNG sales agreement and is not expected to impact Kosmos' long-term expectations and financial situation, according to their statement.

BP, which holds a 56% stake in GTA, operates the project, and its subsidiary is the exclusive buyer of its 2.5-million metric ton per year volume under a 20-year contract.

In November 2023, BP announced that the project was 90% complete and expected start-up in the first quarter of 2024, slightly later than initially planned.

On Tuesday, Kosmos CEO Andrew Inglis stated at a BloombergNEF conference in London that the GTA project should commence by the end of the year. Kosmos has a 26.8% stake in the project.

Additionally, BP, Shell (LON:SHEL), and other energy firms are engaged in a legal dispute with Venture Global LNG, accusing the LNG producer of denying access to supplies while exporting over $18 billion worth of superchilled gas, according to a filing with U.S. regulators.