TULLOW Oil plc has announced that Parliament has ratified the extension of its West Cape Three Points and Deepwater Tano petroleum agreements, covering the Jubilee and TEN fields offshore Ghana.
The extension keeps the agreements in force until December 31, 2040.
In a statement copied to The Ghanaian Times in Accra yesterday, the company said that from July 20, 2036, the Ghana National Petroleum Corporation (GNPC) will receive an additional 10 per cent participating interest in the fields, with the shares of joint venture partners reducing proportionately.
The statement also indicated that Tullow, on behalf of the joint venture partnership, had secured revised terms for gas supply from the Jubilee Field for the duration of the extended period at an escalating price of $2.50 per mmbtu.
Additionally, a gas payment security mechanism and heads of terms for the potential supply of gas from the TEN fields have been agreed with the Government of Ghana.
Commenting on the development, the Chief Executive Officer of Tullow, Ian Perks, said: “The ratification of these agreements secures our long-term operating position, providing a runway for responsible resource development and a stable investment environment alongside the payment security for gas.”
The company described the ratification as a significant milestone that reinforces its long-term commitment to Ghana and supports continued investment in its core Jubilee and TEN assets. It attributed the achievement to strong collaboration between the joint venture partners, including GNPC, and the Government of Ghana.
In a related development, Tullow said its subsidiary, Tullow Ghana Limited, operator of the TEN fields in the Deepwater Tano Block, has signed a Sale and Purchase Agreement to acquire the TEN Floating Production Storage and Offloading (FPSO) vessel on behalf of itself and its partners — GNPC, GNPC Explorco, Kosmos Energy and PetroSA.
The company said the transaction aligned with its strategy to optimise production, cut fixed costs by eliminating annual lease payments, improve operating efficiency and create long-term value.
Completion of the deal remains subject to regulatory approvals and other conditions precedent.
“Tullow’s net consideration, equivalent to approximately one year of current net lease cost, is expected to be funded by in-year cash flow from TEN and will be paid upon completion of the transaction at the end of the first quarter of 2027,” the statement said.
Mr Perks described the acquisition as another strategic milestone.
“This value accretive transaction is another important milestone for Tullow, in line with our strategic priority to optimise production activities and deliver improved economics as we leverage our operational expertise,” he said.
He added that acquiring the FPSO would deliver significant cost savings by removing annual lease costs and resetting fixed operating expenses at the TEN fields.
“By extending the economic life and removing the annual lease cost, we will create additional free cash flow potential for the company beyond 2027. This transaction is another key deliverable for Tullow, strengthening the foundations for future value creation.”
BY TIMES REPORTER
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