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Tullow Oil PLC - West Africa-focused oil and gas producer - Exercises its pre-emption rights to raise its equity interest in the Jubilee and TEN fields offshore Ghana, which it operates. Tullow is exercising its rights over the sale by Occidental Petroleum Corp of its interest to Kosmos Energy Ltd. Tullow will pre-empt on the Deep Water Tano block interest indirectly acquired by Kosmos. This will increase Tullow's overall stake in the block by 7.7% to 54.8%. It will hold a 38.9% interest in Jubilee and 54.8% in the TEN fields.
Tullow says the purchase, which will cost it about USD150 million, will raise its daily attributable production by 10%, and the resulting USD250 million in additional cash flow between 2022 and 2026 will be applied to paying down debt. The deal requires Ghana government approval.
Tullow adds that if partners Kosmos Energy Ghana HC and Petro SA do not also pre-empt, it will do so, which would raise its stake by 11.1% instead of 7.7% and increase the total cost to USD206 million.
Tullow current stock price: 46.04 pence, up 1.2% on Thursday
Year-to-date change: up 56%
By Tom Waite; thomaslwaite@alliancenews.com
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