Tullow Oil and PetroSA are set to increase their stakes in the Jubilee and Twenboa-Enyenra-Ntomme (TEN) fields offshore Ghana.
The two firms intend to exercise their pre-emption rights related to the sale of Occidental Petroleum’s interests in the two Ghanaian fields to Kosmos Energy in order to boost their stakes.
This comes a month after Occidental agreed to divest its interests in the Jubilee and TEN fields to Kosmos Energy and Ghana National Petroleum Corporation.
The Jubilee field and Twenboa-Enyenra-Ntomme field are located in the Deepwater Tano (DWT) block offshore Ghana.
The block is operated under a joint operating agreement (JOA) that provides pre-emption rights to Tullow and PetroSA.
The exercise of pre-emption rights is subject to finalising definitive agreements with Kosmos/Anadarko WCTP Company. It is also contingent on securing approval from state-owned Ghana National Petroleum and Ghana’s Ministry of Energy.
If completed, Kosmos’ ultimate interest in Jubilee will fall by 3.8% to 38.3% and in TEN by 8.3% to 19.8%.
Concurrently, Tullow will increase its share in the DWT block by 7.7% to a total of 54.8% by paying around $150m. This will increase the firm’s stakes in the Ten and Jubilee fields to 54.8% and 38.9% respectively.
Tullow CEO Oil Rahul Dhir said: “This is a value accretive, self-funded opportunity for the Group which will increase Tullow’s daily Group production by c.10% 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.”