Tullow Oil plc announced it would increase its equity interest in the Jubilee and TEN fields in Ghana.
PRE-EMPTION
The company has exercised its right of pre-emption related to the sale of Occidental Petroleum’s interests in the fields to Kosmos Energy.
Tullow aims to increase its share in the Deepwater Tano (DWT) block by 7.7% to a total of 54.8% for $150 million funded through existing resources.
This will increase the company’s equity interests in the Jubilee field to 38.9% and in the TEN fields to 54.8%.
IMPACT
The additional equity interests are expected to add circa 10% to daily group production and generate more than $250m incremental free cash flow at $65/bbl for Tullow between 2022 and 2026.
The extra funds will help to accelerate Tullow’s debt reduction.
Chief executive Rahul Dhir added that the opportunity fitted well with the company’s strategy to focus on maximising value from producing assets.