Tullow Oil has exercised its pre-emption rights to obtain shares of Occidental Petroleum’s interest in the Jubilee and Tweneboa Enyenra Ntomme fields in Ghana, the UK-based company announced today.
The block is under an operating agreement that allows partners to refuse sale of any interest on the block, which was indirectly going to partner Kosmos Energy.
The move would see Tullow Oil’s shares on the Deepwater Tano block increase by 7.7%, which would increase its equity shares in Jubilee and Tweneboa Enyenra Ntomme fields to 38.9% and 54.8% respectively.
The decision weighs on Tullow Oil’s partners, Kosmos Energy and Petro, to pre-empt along with them. If not, Tullow will acquire 11.05% of the block for around USD 206 million.
“This is a value accretive, self-funded opportunity for the group which will increase Tullow’s daily group production by around 10% and generate additional cash flow to help accelerate debt reduction,” said Rahul Dhir, CEO of Tullow Oil.