Good day, everyone. Welcome to Kosmos Energy's Fourth Quarter 2020 Conference Call. Just 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 Kosmos Energy.

Good day, and thanks to everyone for joining us today. This morning, we issued our fourth quarter earnings release. And 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 Inglis, Chairman and CEO; and Neal Shah, CFO. During today's presentation, we will make forward-looking statements that refer to our estimates, plans and expectations. Actual results and outcomes could differ materially due to factors 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 will turn the call over to Andy.

Thanks, Jamie, and good morning and afternoon to everyone.I'll start today's presentation with a reminder of our strategy and the characteristics that differentiate Kosmos. I'll then look back at 2020 and the strategic steps we made during the year, despite the COVID-related challenges, before Neal walks through the quarterly numbers and the financial progress we made in 2020. I'll then wrap up the presentation with a look forward into 2021 and the increased momentum we expect to an active year ahead. Turning to Slide 2, which looks at our portfolio and unique characteristics that define the company, Kosmos has a high-quality portfolio, world-class, conventional oil and gas assets with strong ESG credentials. Our focus on offshore exploration development production along the Atlantic Margin has not changed. We have three oil production hubs in Ghana, the Gulf of Mexico and Equatorial Guinea, as well as the world-scale LNG development in Mauritania and Senegal. These advantaged assets have low decline rates, brents or HLS price benchmarks and an overall carbon intensity that is significantly lower than the industry average. As our recent Climate Risk and Resilience Report showed, we are making portfolio decisions and capital choices to deliver shareholder value consistent with a lower carbon world. Safety and sustainability are two core values that are critical to the delivery of our strategy. And I'll talk about both subjects in more detail later in the presentation. Alongside the producing assets and our LNG development, we continue to hydrate our exploration portfolio with a focus on returns. This means prioritizing proven basins where we have a deep technical understanding, a large resource portfolio and can leverage existing infrastructure. Our acquisitions in Equatorial Guinea and the Gulf of Mexico targeted opportunities that created value through optimizing the existing production base and through infrastructure-led exploration, or…

Thanks, Andy. Good morning and good afternoon to everyone on the call. Just as Andy talked about the strategic progress Kosmos made in 2020, I'd like to start off with the financial progress we made during the year. Specifically, the decisive actions we took to reduce costs early in 2020, which have materially lowered the company's cash breakeven. As you can see on the charts on Page 7, we made significant reductions to operating expenses, cashG&A, exploration expense, and based business CapEx, resulting in Kosmos being a much leaner and fitter business today. We expect most of these cost savings to be sustainable as we move forward with fewer people working on a more concentrated set of high-graded objectives, which we believe positions the company to create the most shareholder value. In a higher price environment, this lower cost base should significantly enhanced future returns and cash generation. However, one point to note is that due to the pandemic, we under invested in our base production assets compared to our typical maintenance CapEx levels. In 2020, we are planning to normalize our spend, which should allow production to grow back to 2020 levels by the year end with further upside potential in 2022. Turning now to Slide 8, this is a slide many of you will have seen before and looked at the key line items for the quarter. I don't plan to spend time on each item other than to say the results for the quarter were consistent with our expectations with significant progress both sequentially and against the same period last year. While production and realized price were lower, we were successful on our cost initiatives I noted on the previous slide. We made progress on OpEx in 2020. However, we didn't deliver everything we wanted to and therefore per barrel metrics are a bit higher than expected in the fourth quarter. This scenario we will continue to work with our respective operators through 2021. Turning now to Slide 9, which looks at the balance sheet and our liquidity position. Despite the volatility in record low oil prices in 2020,Kosmos maintaineda solid balance sheet with healthy liquidity levels through the year as can be seen on the chart. In the fourth quarter, we closed the Shell transaction, receiving around $100 million of proceeds. It’s also up to $100 million of additional continuous consideration, payable on future drilling success. We maintained tight control of CapEx during the year with around $147 million of total CapEx, which takes into account the Shell proceeds and is in line with company guidance. Hedging remains an important part of our financial strategy. And we've hedged around 60% of this year's production and have started to hedge our 2022 production. With that, I'll hand it back to Andy.

Thanks, Neal. I mentioned earlier in the presentation that operational momentum slowed in 2020 has reduced activity and focused on protecting our people and operations across the portfolio. The end of 4Q and into the start of this year, activity levels have picked up in all areas. As the slide shows,infill drilling activity on our base business was curtailed in 2020. In 2021, we expect to triple the amount of activity this year, with a total of nine wells spread across Ghana, Equatorial Guinea and the Gulf of Mexico. This increase activity is expected to reverse declines and drive-up production, with year-end exit rates materially higher than those seen at the start of the year. AtTortue we are already seeing significant momentum after last year's pause and expect Phase 1 to be around 80% complete by year end. We're also returning to exploration with two or three wells planned this year. We have already seen success with Winterfell in January, and we aim to drill Zora in the second-half of the year. Success of Zora would open additional opportunities that we would evaluate later in 2021. Turning to Slide 11, to look at that activity set in more detail. In Ghana, we've seen a successful installation of the CALM buoy,with a first offloading earlier this month. The start of the CALM buoy removes the need for shuttle tankers to move oil from the FPSOto the tanker, so it should result in lower operating costs for the partnership going forward. As the operators communicated to the market, the drilling rig has been contracted is expected to arrive in the second quarter. We plan to drill two producer wells and one injector on Jubilee in 2021, as well as the gas injector well in TEN. The rig is a contract length of…

Thanks, Andy. On Slide 15, we've included our usual detailed guidance for the year – including our detailed guidance for the year and the appendix. On this slide, I'd like to focus on the key outcomes. As Andy outlined earlier in 2021, we are resetting the dial with production expected to rise through the year as activity increases. Our guidance of 53,000 to 57,000 barrels of oil equivalent per day reflects today's production of around 53,000, rising to an exit right of around 60,000 barrels equivalent per day at year end. We expect to spend around $225 to $275 million in 2021 on the base business with an 80:20 split between sustaining and growth CapEx. The capital being directed to the infill drilling and ILX opportunities with the highest returns. At $55 Brent, we expect that base business, excluding Mauritania and Senegal to generate around $100 million to $200 million of free cash flow, which we plan to use to delever the balance sheet. In Mauritania and Senegal, CapEx for the year is expected to be around $350 million. As previously communicated, we expect this to be funded primarily through the sale of the FPSO and the refinancing of the National Oil Company loans in 2021, a $100 million benefit to Kosmos. As Andy mentioned, we are planning to close the FPSO sale within the second quarter. At which point we expect the benefit to be $250 million net to Kosmos in 2021 with the residual proceeds from the FPSO sale benefiting 2022. I'll now hand back to Andy.

Turning to Slide 16, Kosmos plans on deploying this capital towards the most compelling opportunities that our portfolio both in terms of returns and fitness for the future. As I mentioned on the earlier ILX slide, the deepwater Gulf of Mexico has one of the lowest carbon intensities of any oil basin in the world. This is due to the natural aquifer drive in the Gulf of Mexico pipeline network that limits flaring and the ability to utilize existing infrastructure. This was highlighted in the recent Wood Mac report which can be seen on Slide 16, which shows the deepwater Gulf of Mexico to have the second lowest emission intensity of the major U.S. crude oil suppliers. Once more on the analysis of the players in the Gulf of Mexico, Kosmos has the assets with the lowest carbon intensity. This can be seen on the second chart on the slide. It is for these reasons that we believe Kosmos can play its role in the energy transition. Kosmos support the Paris agreement and we welcome the U.S. is returned to it. We've tested the resilience of the company against the Paris agreement scenarios, adjusted our portfolio accordingly and believe we are well positioned. The U.S. administration's recent executive orders have not affected our Gulf of Mexico production operations. And we have a deep inventory of more than 20 high-grade ILX prospects on existing acreage. Like other companies in the sector, we're watching the developments carefully to understand how new policies will be implemented on a practical basis. As the new U.S. administration that shapes these policies, we are both ready to engage and open to working with policy makers to develop creative solutions to deliver the energy the world needs with fewer carbon emissions. With its abundant infrastructure, the deepwater…

Thank you. We will now be conducting a question-and-answer session. [Operator Instructions] Thank you. Our first question comes from the line of Charles Meade with Johnson Rice. Please proceed with your question.

Good morning, Andy and Neal. Appreciate all your comments this morning. I wonder if you could give a little bit of sense on the FPSO sale leaseback. You guys say that it's – I guess there's two parts to the question. It's targeted for a 2Q close. Can you talk about what, to the extent you can, what are the steps between now and closing? And I guess the second piece, Neal, I wanted to make sure I understood the - will the CapEx be on your ledger up until the close and then after that it's going to be gone?So, it'll essentially be kind of a first-half CapEx?

Yes. Hi, Charles. It’s Andy. Well, I'll take the first part of the question and then Neal can follow-up with the detail on the CapEx. Yes. As we talked about in November, we laid out a funding path to first gas. I think, we're absolutely executing on that plan and we made a lot of progress in the first part of this quarter. And that obviously involved the signing of the MOU with BP, which contained all the key terms for the sale and leaseback. Yes, the structure – the same structure we articulated in November, we have an SPV purchasing the FPSO from the Tortue JV. The SPV will be a BP-controlled entity that raises the debt and it has a BP guarantee associated with it. So actually, the most important point is that this is a very straightforward process, involves BP and Kosmos. And clearly, we've gone through the work to set up the structure and the terms. So, in terms of steps forward, we've got to take the MOU and convert that into the detailed agreements, and we're working hard on that. Then it's a question then of going out and raising the external debt. So, we're well on track to get all of that done by the second quarter.

And then to your second question, Charles, yes. So from a CapEx perspective, the $350 million for the year is spread pretty readably through the year. And so, we are currently funding sort of the cash calls and we'll recognize CapEx related to that. But as you noted sort of post the FPSO sale, you would net the proceeds essentially against the CapEx for the project thereby sort of offsetting each other via post close.

Got it. That's helpful detail. I appreciate it. And then a second question on the EG assets, I noticed that you're going to have three infill wells. And - but on your slide, I think it’s 14, where you show some exploration targets. It doesn't look like any of those ILX wells are going to have an exploration tail or exploration element to them. Is that the right read?

Yes, I think the right – I think the first thing, Charles, to sort of step back, there's a lot of opportunity in the acreage. When we went into EG, it was all about looking at both the production enhancement opportunities that we could see in Ceiba and Okume. They haven't been the focus for the prior owner and we're continuing to work through those. So, we've obviously had a campaign for increasing lift. ESPs, we're continuing with our second campaign of ESPs that's underway, as we speak. We did the work to enhance the seismic imaging in the existing fields in Ceiba and Okume, have to identify the infill targets and we're getting on with those. And then the next phase of activity is going to be the exploration targets. So, we're drilling the infill targets first, because those are the things that we believe have the shortest payback and we'll then come to the ILX program with drilling targets for 2022. But I think, what's interesting about it is that the opportunity sets rich and the most important part of it is to ensure that we execute effectively, efficiently deploy the capital in the right way to bring forward that opportunity set. And we're doing okay. We clearly had an interregnum in the back end of last year with COVID. But we're back with the activity ramping up now, both in terms of the production optimization, ESP program and then the rig, which will start next quarter.

Got it. That's helpful detail. Thank you, Andy.

Great. Thanks, Charles.

Our next question comes from the line of Neil Mehta with Goldman Sachs. Please proceed with your question.

Good morning, guys, and thank you for all this great detail here today. The first question is around leverage levels, net debt around $2 billion. Is there a level, Andy or Neal, that you want to target in absolute levels either debt or net debt that you want to be – you want to aim towards and just talk about the path to getting there?

Yes. Why don’t I - Neal pick that up. Neal?

Hey, good morning, Neil. Yes, in terms of - we were on a path to sort of deleveraging pre-COVID. And post COVID, we still remain on the same path. We've stated sort of our target is to get to 1 to 1.5 times net leverage that net debt about $500 or $1 billion less than what we have today, combined with sort of rising EBITDAX. And so, yes, the good thing about sort of our exposure is, we are – we have high-margin oil. And therefore, as prices are in a sort of $60-plus range, the leverage comes down relatively quickly. And so, we need to – the EBITDAX will naturally rise as both production and price improve some sort of COVID levels. And at the same time, we will redirect sort of the free cash flow out of the business to continue that pay down. So that's a long-winded way of answering the question, but we're on that same path. And we can - especially given sort of the constructive commodity price environment, we can get there pretty quickly.

Yes. That's helpful. And then the second question is just around Gulf of Mexico. And there has been a lot of investor feedback and questions about your exposure there. If the counterpoint would be as Tortue comes on, this becomes a smaller part of the portfolio. Just how do you - how are you sizing risk in the Gulf of Mexico? Help us walk through the difference between bans on federal leasing versus your ability to drill, and how do you see this asset fitting into the long-term story for Kosmos?

Yes, Neil, I'll pick that up. As I said in my remarks, actually, we – Kosmos has supported the Paris agreement and we're pleased that the U.S. is back in. We see the Gulf of Mexico as being an important contributor long-term to the world's oil supply. It’s naturally advantaged and is lower carbon. I think we, therefore, look forward to working with the new administration on the right practical steps forward to enable that resource to be appropriately developed. So, I think, the long-term as you were, if you look at it and actually the medium-term, it remains an advantage basin sort of, I believe nothing has changed in that regard. So how does it practically unfold? From a leasing perspective, I think, Kosmos is relatively not impacted. We've got deep hopper of opportunities on existing acreage we hold. We've got around 20 high graded prospects today that are ready to drill. So, if there were a longer-term fact from no leasing that won't affect our business. And then I think, we just have to wait and see, what's going to happen when it comes to drilling permits. But again, I'm hopeful that actually the practical steps that will enable that to move forward. I don't think that the intent of the administration. So, we remain very constructive both from where it sits in our portfolio today. I think it remains a very competitive just because of the natural advantages it has. And I think it was just interesting to share with you actually, the Wood Mac analysis of that and where our portfolio sits. So, I think it's naturally advantaged is therefore has a place. We are robust to a slowdown in leasing because of the work that we did over the last couple of years to build the portfolio. And yes, there will be some practical things that need to be done from a drilling perspective, but we're confident that that's going to move forward. So, I remained actually very positive about the base and then about the conversations that we'll have with the administration as a result.

Great guys, thank you.

Our next question comes from the line of Bob Brackett with Bernstein Research. Please proceed with your question.

Good morning. Thank you. I had a question on the sustaining CapEx program. I think you're guiding to around $200 million, and that holds you say around 60,000-barrel oil equivalent a day, at what sort of the internal decline rate?

Yes. Bob, I think if you're looking at the sustaining campaigns, you're right. It's in that sort of 200, maybe a little more, 200, 225 levels. So, we're sort of ramping up in 2021 that gets you to that level. But that sort of range, you can hold production flat. Yes. So that's the level of CapEx to sustain production across Ghana, Gulf of Mexico, and Equatorial Guinea.

Against what sort of decline rate?

Underlying decline rate. It's probably, you've got to split it out between infill drilling and the production optimization that we do. So, there are some activities, Bob, the ESPs for instance are – will be expensive as opposed to capitalize. But if you look at the overall decline rates, probably around 10%, and then you're offsetting that with the production optimization and then the infill drilling.

Great, thanks. Quick follow-up on the Tortue Phase 2 FID, so the front running concept is this lean sort of concept that you've laid out before, are you bringing a single concept to FID or are you carrying several concepts that could potentially be FID?

Yes, well, clearly the point of optimizing the concept. So yes. Work is being done to optimize the detail. But the fundamental concept in terms of maximizing the use of the existing infrastructure is the way forward that we've agreed with BP. So, what does that mean? It means that you're fully utilizing the subsidy infrastructure, you're fully utilizing the available gas processing capacity on the FPSO. You're fully utilizing the pipeline from the FPSO to the near shore. Yes. So that that remains unchanged. And then ultimately, there are some opportunities around the number of additional wells that you can fit into those subsidy manifolds. You can do some additional sort of extensions, et cetera. But ultimately what you're trying to do is say what's the best configuration for the reservoir subsidy that fully optimizes the facilities infrastructure that we have in place. Yes. So, the concept is sort of not changed the issue with how do you get the most out of it.

Yes. That's clear. So, there's no stalking horse concept of say a 4 million tonne per annum concept.

No, No. There's no stalking horse. No. And in fact, it's almost the reverse Bob, it's sort of saying, let's make sure we've absolutely optimized this to get the most through. Yes. It's quite the reverse. Yes.

Yes. That's clear. Thank you.

All right, thanks.

Our next question comes from the line of James Carmichael with Berenberg. Please proceed with your question.

All right. Afternoon guys. Just a couple, firstly on Equatorial Guinea, I guess I'm just looking at the transaction there recently and the incoming partner sort of outlined an ambition to get to 55,000 barrels a day. I think of the next two or three years, just wondering if that's in line with your ambitions there as well, or your sort of understanding of the upside potential. And then maybe if you could just remind us around the options of the $300 million direct investments to get you to first gas at Tortue and I guess sort of expectations around timing and your preference for how that's structured. Thanks.

Yes. Hi James. I'll take the first question. And then Neal can handle the second one. Yes, it's great to have new partner and actually it's great to have a partner that sees the potential in the asset. They've clearly invested in to EG on that basis. So, I think the fundamental potential that we both see is very similar. We as I said earlier, in the comments Charles, that the EG assets have a layer cake of opportunities, there's a layer cake from production optimization, which we've done very successfully on the second round of that. There's a layer cake now that we're building in from the infill drilling, and then there's a layer cake from the ILX opportunities that sit around the asset. So, I think we see a very similar view of the opportunity set, and it's good to have a part there that wants to invest alongside us. So, I don't think we have a different view. I'm not going to comment ultimately about the production, because that's for them to talk about. And clearly, we're not giving guidance today that far out. But I think the most important part of the story actually is the scale of the opportunity set. And that sense, this is a third-party verification as a story that we talked about when we first went into Equatorial Guinea, we talked about exactly those layers and play last year was a bit of a challenge in terms of having to hold back on the pace at which we pursued that. But we're back in action now. And there remains a lot of oil to be produced from Ceiba and Okume and the surrounding ILX opportunities. And this sounds a long-term role in our portfolio.

And then James, just to answer your question on the direct investment in Mauritania and Senegal. Yes. It is the last piece of the financing puzzle that that we'll put in place that we clearly focused on putting the FPSO in place within the second quarter and then the NSE, financing, and then as for the direct investment, we're looking at a number of options as we sort of refer to in November to fill that last 300 million those alternatives, a couple of them, including, the partial sale of our non-Tortue gas assets as part of the funding solution. We have the ability to put it within the RBL. And then lastly, we have the ability to defend it from excess cash sort of higher oil prices. And so yes, there's a number of different solutions and I think we're keeping the optionality, which is the best ultimate solution. But we'll do that last within the sequence of Mauritania and Senegal financing.

Alright, thanks. Just another one if I actually can,just onthe emission zero targetis that sort of – does that include your non-op assets as well? And can you just give us a sort of sense of how the West African portfolio stacks up against the Ghana on those intensity metrics that you outlined? Thanks.

Yes. A good question, marked. Scope 1 and Scope 2, the definition is around your growth operated. Yes. So, the play that's in the Gulf of Mexico, and we've got about sort of 50,000 barrels, a day of gross operated production in the Ghana. Yes. So clearly, with that scope one and scope two target, we would be focusing on the things that we can control and therefore that covers that operated activity. And of course, it benefits from being having a lower carbon intensity. It's at around, as we showed on that slide, it's sort of around 10 kilograms per tonne. So, you look around the world all basins, that is differentiated here. As you start to look more broadly at the non-operated activities that are probably closest to sort of the industry average, it's around 20. Yes.That said, the assets in Ghana, for instance, are advantage because you do have the ability to export gas, yes. So, we are connected to the gas grid, the gas goes to power. And actually, the need for gas is increasing through time. We've probably doubled the amount of gas export over the last couple of years from around sort of 60 to close as probably toaveraging 100 to 120 currently. So, the demand for the gas is there. So, the ability to drive down the carbon intensity of theGhanaassets, I think, is high. So, there's a start, I think, from a higher starting point, but the operator is – we've got clear plans, and we're fully supported, moving the Ghanaassets, down the carbon intensity route. So,Scope 1, Scope 2 is about things you operate, and that's the Gulf of Mexico for us. We’ve gotsignificant growth operated footprint there. And we're targeting thedelivery of that alongside our other ESG commitments, through that 2030 timeframe.

Great, thanks.

Great, thanks.

Our next question comes from line of Mark Wilson with Jefferies please proceed with your question.

Hi, good afternoon. I'd like to ask about the bigger picture for Mauritania and Senegal. I think it's – this presentation last year, had a last slide on the Greater Tortue resource base 100 TCF gas in place across the three hubs,Tortue,Yakaar and BirAllah, and 10 million tonnesper annum potentially across each one of those. Obviously Tortueis now, five million tonnes proposed for the two drains. Could you give us a view on the bigger picture across all those assets? And also, what are your current marketing plans for a potential sell down there Neal just mentioned possible sale of non-Tortue gas assets regarding the direct investment. Thank you.

Yes Mark, I think, the same gas space and actually, different character of assets. I think the instinct for Tortue itself Phase 2 get to five million tonnesper annum, that fully utilizes available infrastructure, it’s the most capital-efficient project therefore, it's the right thing as the next building block. Beyond that, there is significant resource that would support a 10 million tonne per annum scheme that would require additional infrastructure so that is remaining upside for the future. I think,Yakaar-Terangais interesting, because it's actually closer to theDakar peninsula. Andthe concept work that BP is pursuing at the moment would have a domestic gas scheme first followed by an LNG export scheme. So that is an important component actually of the energy plans for Senegal to be able to replace diesel burning power with gas and therefore, enable a lower carbon future for Senegal with that gas powered generation. So, I think, significant population of Senegal, the desire to grow their power generating capacity, but obviously to do that in a carbon-friendly way. So, the concepts are only for Terangato how you stage the right infrastructure that enables that domestic scheme to be the bedrock of the development. And then actuallysupplement it with gas exports. And again, the infrastructure is different because it's more adjacent actually to the major urban areas in Senegal. And thenBirAllahis againdifferent, a smallpopulation in Mauritania, but still a need full gas. Yes. But not the scale of gas that would actually enable full development of BirAllah. So, in terms of the thinking, I think, around thedevelopment concepts is the area where there's probably, more work to be done to come up with the optimized development scheme for BirAllah. But in terms of its cost point, as you look at it across the world today, it's as competitive as Tortue, very similar reservoir density, very similar, there for economics and cost of supply. So, I think, the resource is significant. As you rightly say, Mark, I think, our focus has been on getting the cash flow from the first project optimizing it with Phase 2. And then I think it's about conversations with both countries, which are around how is the resource optimally developed, that fits their plans and the and the resource description.

Do you see yourself going back to the active sort of sales process you had compared a year ago on those assets?

On that, I think, this is about – it's one of the options that Neal has discussed. I think it's about finding the right fit for the project. Yes. So, we're clear about what the concept is. And as you look to the energy transition, there are more companies looking to find a gas resource to be able to be a long-term source for their own portfolios. And that's what we have in Mauritania and Senegal. So, when we're having those conversations with interested parties, the conversation is not about formal sort ofbid process, but it's actually bringing on board the right people that can support the long-term vision for both the development concept and with the government.

Okay, a lot, very clear. Thankyou.

All right, thanks.

Our next question comes from line of Nick Stefanou with Renaissance Capital. Please proceed with your question.

Hi guys, thank you for taking my question. It’s Nick from Ren Capital. On the bottom Asam discovery you made a couple of years ago in EG, you spoke about infill drilling and oil export opportunities, but what is the latest from that, is this signal being considered as a step up to the target to the [indiscernible]? That's the first question. And the second one is this for Neal. Are you looking to refine RBL in the first-half of the year? How was your experience in that? It should be around bottom along this time. There was no mention of it. So yes, that's the question.

Okay, yes, thanks Nick. Asam was an important sort of discovery for us, we are now doing the work to properly appraise the opportunity and actually figuring out the best way to integrate it into the infrastructure. So, there's more work to be done this year to position that for a development plan that fully optimizes all those Ceiba and Okume infrastructure. I think for usit was just a demonstration of the additional resource there is there. We need to ensure that we've got a development plan which properly optimizes the reservoir, in particular the reservoir development of our Asam for the future. And so, for 2021, we're focusing on the infill opportunities. They are platform drilled opportunities therefore, they are easy to tie back and get into production. So, the time between, completing the well in production is very short. Asam, will require some subsea infrastructure to be put in place. And therefore, as we look at it, we need to make sure we have optimized that correctly.

Yes. And then, Nick, just on your question on the RBL, we do have a redetermination planned, at the end of the first quarter, and we've just started discussions with those banks, and they're going wellso far. As you had the last redetermination was done in a much lower oil price environment. And so, having sort of more constructive oil prices, will help that process. And as you rightly mentioned, as part of that process, we will speak to the banks around less of a refinancing, but more of an extension of the existing facility. And that unlocks additional borrowing capacity, as well, as we've done in the past.And so, the banks have been very supportive, and we plan to continue sort of our regular process. And as part of that, we will continue to extend the maturities and increase the capacity on available capacity on the RBL.

Okay, got it. And the quicker flub [ph] the free cash flow range, it's $100 to $200, that's quite large. Is it other deltas solely due to the upper and lower end of the production guidance,are there other partners behind those – behind the delta, basically?

Yes, I mean, a large piece of that is production. And then it's just the timing of some of the expenses. But I think, because one cargo even in at $55 world is $55 million, right? So, it is sensitive to that work, which is why we've sort of left the range intentionally pretty vague.

Okay, fair enough. That’s it, thanks so much.

Okay, thanks Nick.

Our next question comes from line of Richard Tullis with Capital One Securities. Please proceed with your question.

Thanks. So good morning, Andy andNeal. Two quickones. Sorry, if I missed this, what's the rough break out of the 60,000 a day 2020 exit rate by major area?

So just off the top of my head, Richard, it will be pretty close to historic knowns with sort of Ghana is 40% to 45%, EG is around 20%? And then the GOM is around 30% to 35%.

Okay. And then a follow-up, looking at the Gulf of Mexicoguidance for the first quarter that 20,000 to 25,000– excuse me, 20,000 to 22,000 a day, when you compare that to where it was a year ago, somewhere in the neighborhood of 28,000 a day, what are the main drivers of the reduced production there? Is it mainly the lack of drilling in 2020 due to the pricing, or any other contributing factors, maybe, planned downtime issues bringing production back on from the storm season, et cetera?

Yes, Richard no, you' are right. So, if youlook at it, we only had one in four, well, actually in 2020, which was the Tornado injector, yes. And of course, thatthrough time actually starts to build reservoir pressure, which leads to an increase in production. So, though there was natural decline, which iswhere we're seeing the current raise, and therefore, with the additional what we know the Kodiak well, which we're completing, at the moment, same Kodiak well, and then the Tornado-5well plan forthe middle of the year, that will help us sort of bring production up. The only factwhen you look at it on a quarterly basis, okay, the first quarter has been weak. We had an unplanned downtimeissue on the Kodiak-1 well, which came offstream around December. And we're finishing that repair and the wellwill be back onby the end of the month. So that's affected the quarter oneuniquely. So, I think, if you look at the numbers overall, and youlook it at on a yearly basis, the lowering of 2021 versus the sort of underlying rating in 2020 is simply around the decline rate. If you look at pacifically at quarter one, the unplanned downtime on the Kodiak-1 well has had a differential impact.

Okay. Well, thanks very much.

Okay. Thanks, Richard.

Our next question comes from line of Al Stanton with RBC Capital Markets. Please proceed with your question.

Yes. Good evening. Just two very simple questions if I may. Just with respect to Tortue and the sale of the FPSO, should we just assume that the later that sale happens, the more money you get, so we might as well just think, in the $250 million, and worry about the quarterly breakdown when we put out quarterly numbers. And I suppose the other question is about hedging. Neal, rather, unfortunately, the forward curve isn't probably the shape you want. What are you doing about your hedging policy given, the forward curve is much lower than spot price? So, are you just checking that up, or are you taking a change in strategy?

Yes, so just on the on the first question, from a timing perspective, yes, I mean, we're basically expecting sort of – or forecasting that $250 million benefit. The longer it sort of takes there's a larger sort of working capital impact before you get that back. But in terms of the overall transaction, you still save the $320 million net to us, in any case. So, there is this sort of shift around depending on when it closes, in terms of how that pushes forward. But that will just be a timing effect around the transaction, and doesn't change sort of the overall benefits from the transaction.

Yes.

And your second point, just on hedging, I mean, so it is in backwardation, which is a little more difficult to hedge into. But, again, I think, from a general perspective, the business does great in a $60 world and so what we're trying to do, and even in a $50 world. And so, as we're continuing to layer in hedges on a pretty regular basis into 2022, the goal is put in downside protection that lets us fund the business. And so, we're putting in floors around that 50-ish dollar level, and trying to keep as much upside as possible. So, in the last few trades, we've been able to get upside up to call it $70 per barrel. And we will layer those in across the year. So, the good thing is, is sort of as you go out in time, the curves continue to move up. And so, it'll continue to help us layer in more attractive hedges. But it is something we're going to consistently do, as we've done in the past, and that will guarantee our ability to fund future expenses.

Should we expect you to move away from swaps and three-way collars, or we'll just see how it goes?

Yes, I mean, I think, in terms of overall program design, we're not going to massively change the way we've done it. We've done it pretty consistently. And so there will be a combination of instruments depending on what's most attractive at the time. But ultimately, again, what we're trying to do is forecast or put in hedges that ultimately allow us to fund the plan. And within that context, keep as much upside as possible. And so, as the prices move around different instruments will look different – look attractive at different points in time. And so, we started with wider colors that give us that downside and as much upside today. And as sort of things normalize, we can shift into some of those other structures, but the objective overall stay the same.

Okay. Thank you.

All right, thanks Al.

Thank you. 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 disconnect your lines at this time. And thank you for your participation.