Tullow Oil moves forward on Ghana licence extensions and gas agreement

Tullow Oil has precocious efforts to widen the operating licences for its Jubilee and TEN oilfields successful Ghana until 2040, pursuing the finalisation of a caller state income agreement.

The institution is present moving to implicit further agreements with authorities authorities.

Tullow CEO Ian Perks, who assumed the relation successful September, highlighted the company’s objectives successful a caller trading update.

In June, Tullow and its partners, PetroSA, Kosmos Energy, Ghana National Petroleum Corporation and Explorco, signed a memorandum of knowing with the Ghanaian Government.

The statement relates to the West Cape Three Points and Deep Water Tano blocks.

Tullow’s latest update highlighted that a caller state income declaration has been executed for the Jubilee field, providing clarity connected state pricing for the duration of the extended licences.

The institution is presently addressing outstanding issues including securing outgo mechanisms for state income and an updated program of improvement for Jubilee, which volition necessitate support from parliament.

Production astatine Jubilee averaged astir 61,000 barrels per time (bpd) gross (23,900 nett to Tullow) done October, backed by the completion of a caller accumulation good this year.

Drilling of a 2nd well, J73-P, commenced this period and is expected to commencement producing by the extremity of the year.

The TEN tract has produced astir 16,000bpd, surpassing expectations owed to beardown show from the Ntomme and Enyenra fields.

Uptime for floating accumulation retention and offloading vessels astatine some sites averaged 97% up to the extremity of October.

Looking ahead, Tullow has approved a drilling programme for 2026 involving 5 wells, comprising 4 committed (three producers and a h2o injector) and 1 optional producer.

The institution is besides conducting an water bottommost node seismic survey and integrating caller four-dimensional seismic information to refine reservoir models and pass aboriginal drilling.

On the fiscal side, Tullow has concentrated connected improving its equilibrium expanse done plus disposals, having completed the merchantability of its interests successful Kenya for astatine slightest $120m (£91.65m) and its Gabon assets for astir $300m aft taxes.

Tullow is present successful talks with bondholders and investors astir refinancing options up of a enslaved maturity successful May 2026.

Receivables owed by the Ghanaian Government, including improvement indebtedness for TEN and overdue currency calls, totalled much than $200m (2.22bn cedis) nett to Tullow arsenic of past month.

Perks said: “Our near-term precedence remains to enactment Tullow connected a semipermanent sustainable fiscal footing. To execute this, we are focused connected maximising operational ratio successful Ghana, outgo optimisation and refinancing the Group’s superior structure.