Africa focused oil and gas firm, Tullow Oil plc, has announced that it has exercised its right of pre-emption related to the sale of Occidental Petroleum’s interests in the Jubilee and TEN fields in the Republic of Ghana to Kosmos Energy.
The company said when the acquisition process is completed, its equity interests will increase to 38.9 per cent in the Jubilee field and to 54.8 per cent in the TEN fields.
The transaction is expected to cost Tullow about US$150 million to be funded through existing resources.
“As per the DWT Joint Operating Agreement (JOA), Tullow has pre-emption rights in respect of the 11.05 per cent participating interest within the offshore DWT Block acquired by Kosmos Energy as a result of its acquisition of Anadarko WCTP Company announced on 13 October 2021.
“Tullow has exercised its right of pre-emption over this participating interest in DWT and assuming all JV Partners also fully exercise their pre-emption rights, this would increase Tullow’s share in the Block by 7.7 per cent (to a total of 54.8 per cent ). This would, in turn, increase Tullow’s equity interests in the Jubilee and TEN fields to 38.9 per cent and 54.8 per cent, respectively,’’ the company said in a statement posted on its website.
The CEO of Tullow, Rahul Dhir commented: “This is a value accretive, the self-funded opportunity for the Group which will increase Tullow’s daily Group production by 10 per cent and generate additional cash flow to help accelerate debt reduction. Increasing our operated stakes in the Jubilee and TEN fields underscores our commitment to investing in and delivering our Ghana Value Maximisation Plan. This opportunity fits well with our strategy to focus on maximizing value from our producing assets. We look forward to constructive conversations with our JV Partners and the Government of Ghana as we finalise the transaction.”