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Kosmos Energy shares jump after it strikes deal with BP

Robert 'Bob' Dudley, chief executive officer of BP Plc.
Christophe Morin | Bloomberg | Getty Images
Robert 'Bob' Dudley, chief executive officer of BP Plc.

Shares of Kosmos Energy soared 10.3 percent Monday after the company announced a partnership with BP to develop gas resources in Africa.

On Monday, Kosmos said it will combine its expertise with BP in African countries Mauritania and Senegal.

BP will get a 62 percent stake and operation control in exploration blocks of Mauritania. Kosmos will also give BP a 32.5 percent stake in its projects in Senegal. Kosmos will receive fixed consideration of $916 million, including other benefits.

"Following a thorough farm-out process, BP emerged as the right partner to help us advance the Tortue gas project at pace and take forward a multi-well, exploration program that will test the basin's liquids potential beginning in mid-2017," Kosmos Energy CEO Andrew Inglis said in a statement.

The companies also entered into an exclusive partnership for potential new venture opportunities in Mauritania, Senegal and The Gambia.

The transaction is expected to close in the first quarter of 2017, subject to customary conditions including government approvals.

Kosmos Energy's stock is up 21.54 percent year-to-date.

Kosmos Energy 5-Day Chart


—Reuters contributed to this report.