Tullow Ghana Limited (TGL), a subsidiary of the UK-headquartered Tullow Oil, an independent energy company with operations in West Africa, has set the wheels in motion to acquire a floating production, storage, and offloading (FPSO) vessel, which is working off the coast of Ghana, West Africa
The company has signed a sale and purchase agreement (SPA) on behalf of itself and its joint venture (JV) partners – Ghana National Petroleum Corporation, GNPC Explorco, Kosmos Energy, and PetroSA – with T.E.N. Ghana MV25 to acquire the FPSO Prof. John Evans Atta Mills for a gross consideration of $205 million (around $125.6 million net to Tullow) to be paid upon completion of the transaction at the end of the first quarter of 2027.
Ian Perks, Chief Executive Officer of Tullow, commented: “This value accretive transaction is another important milestone for Tullow, in line with our strategic priority to optimise production activities and deliver improved economics as we leverage our operational expertise. The acquisition of the FPSO will deliver material cost savings by removing the annual lease cost and resetting our fixed costs at the TEN fields.
“By extending the economic life and removing the annual lease cost we will create additional free cash flow potential for the company beyond 2027. This transaction is another key deliverable for Tullow, strengthening the foundations for future value creation.“
The FPSO serves as the production facility for the TEN fields on the Deep Water Tano Block offshore Ghana. Following completion, the operator intends to maximise operational synergies with the adjacent Jubilee field and drive further cost efficiencies, which will underpin the longer-term development of these fields.