Tullow Oil plc, an independent oil & gas, exploration and production group, quoted on the London, Irish and Ghanaian stock exchanges, has said it has completed the pre-emption of the Deep Water Tano component of Kosmos Energy/Occidental Petroleum Ghana transaction.
The Group, which has interests in over 30 exploration and production licences across eight countries, said in a statement dated 21 March 2022 said the transaction takes its equity interests to 38.9% in the Jubilee field and to 54.8% in the TEN fields and adds c.5 kbopd of unhedged daily production.
This equates to c.4 kbopd on an annualised basis and increases 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 statement noted.
This additional equity increases Tullowâ€™s 2022 Group capital expenditure forecast by $30 million to $380 million and is expected to generate c.$300 million incremental free cash flow at $75/bbl between 2022 and 2026.
As of 31 December 2021, the transaction increases Tullowâ€™s net 2P reserves by c.21 mmboe (9%) and has an estimated post-tax NPV 10 valuation of $355 million at $75/bbl, the statement added.
Speaking on the completion of the transaction, Tullow Oil plc CEO Rahul Dhir, said: â€œI am delighted that this important transaction has completed and I am grateful for the continued support of the government of Ghana and, in particular, the Honourable Minister of Energy whose leadership has been paramount in getting to completion. This transaction underscores our confidence in the assets and meets our objectives of value accretion and deleveragingâ€.