Tullow completes pre-emption of Tano component of Kosmos Energy/Occidental Petroleum Ghana transaction

Tullow 21 MarchTullow Oil has completed the pre-emption related to the sale of Occidental Petroleum's interests in the Jubilee and TEN fields in Ghana to Kosmos Energy

The cash consideration paid on completion was US$118mn reflecting closing adjustments and was funded from cash on the balance sheet.

This transaction takes Tullow's equity interests to 38.9% in the Jubilee field and to 54.8% in the TEN fields and adds approximately five kbopd of unhedged daily production. This equates to approximately 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). 

This additional equity increases Tullow's 2022 Group capital expenditure forecast by US$30mn to US$380mn and is expected to generate approximately US$300mn incremental free cash flow at US$75/bbl between 2022 and 2026.

As of 31 December 2021, the transaction increases Tullow's net 2P reserves by approximately 21 mmboe (9%) and has an estimated post-tax NPV 10 valuation of US$355mn at $75/bbl.

Rahul Dhir, CEO of Tullow Oil plc, has thanked the government of Ghana and, in particular, the minister of energy for the completion of the project.

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