Tullow Oil plc has completed the pre-emption transaction to take its interests to 38.9% in the Jubilee field and to 54.8% in the TEN fields in Ghana.
PRODUCTION
The pre-emption relates to the sale of Occidental Petroleum’s interests in the Jubilee and TEN fields in Ghana to Kosmos Energy.
The $118 million payment sees an additional 5 kbopd of unhedged daily production for the company.
Tullow said that this equated to 4 kbopd on an annualised basis and increased 2022 group production guidance to 59-65 kbopd (30-32 kbopd at Jubilee, 13-14 kbopd at TEN and non-op portfolio unchanged at 16-19 kbopd).
The additional equity increases Tullow’s 2022 group capital expenditure forecast by $30m to $380m and is expected to generate $300m incremental free cash flow at $75 /bbl between 2022 and 2026.
CONFIDENCE
Chief executive Rahul Dhir added that the transaction underscored the company’s confidence in the assets and met objectives of value accretion and deleveraging.