Business
Tullow Pre-emption in Ghana
Tullow Pre-emption in Ghana.
About this update from Tullow Oil Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 0719S\n Tullow Oil PLC\n 11 November 2021\n \n \n \n \n \n News Release\n \n \n \n \n \n Tullow pre-emption of Deep Water Tano component of Kosmos Energy/Occidental Petroleum Ghana transaction\n \n \n \n \n \n \n \n \n 11 November 2021\n - Tullow Oil plc (Tullow) announces 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 Ghana to Kosmos Energy. \n \n \n \n \n \n Pre-emption summary\n \n \n \n - \n Tullow to pre-empt on Deep Water Tano (DWT) Block interest indirectly acquired by Kosmos Energy\n \n \n - \n Post completion, it is anticipated that Tullow's equity interests will increase to 38.9% in the Jubilee field and to 54.8% in the TEN fields\n \n \n - \n The additional equity interests are expected to add c.10% to daily Group production and the associated incremental cash flow will help to accelerate Tullow's debt reduction \n \n \n - \n The consideration is expected to be c.$150 million (if pre-emption by other Joint Venture (JV) Partners is fully exercised), which will be subject to closing adjustments\n \n \n - \n Tullow will fund this transaction through existing resources \n \n \n \n Rahul Dhir, CEO of Tullow Oil, commented today:\n \n \n \n \"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. We look forward to constructive conversations with our JV Partners and the Government of Ghana as we finalise the transaction.\"\n \n \n \n \n \n \n Assets being acquired\n \n \n \n As per the DWT Joint Operating Agreement (JOA), Tullow has pre-emption rights in respect of the 11.05% 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 e...