Tullow Oil has completed the pre-emption associated to the sale of Occidental Petroleum’s pursuits in the Jubilee and TEN fields in Ghana to Kosmos Energy.
The cash consideration paid on completion was US $118M reflecting closing changes and was funded from money on the stability sheet. This transaction takes Tullow’s equity interests to 38.9% within the Jubilee subject and to fifty four.8% in the TEN fields and adds roughly five kbopd of unhedged day by day manufacturing.
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This equates to approximately 4 kbopd on an annualised foundation and increases 2022 Group production guidance to 59-65 kbopd (30-32 kbopd at Jubilee, 13-14 kbopd at TEN and non-op portfolio unchanged at 16-19 kbopd).
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Equity
This further fairness increases Tullow’s 2022 Group capital expenditure forecast by US$30Mto US $380M and is predicted to generate approximately US$300mn incremental free cash move at US$75/bbl between 2022 and 2026. As of 31 December 2021, the transaction increases Tullow’s web 2P reserves by approximately 21 mmboe (9%) and has an estimated post-tax NPV 10 valuation of US $355mn at $75/bbl.
“I am delighted that this necessary transaction has accomplished and I am grateful for the continued support of the Government of Ghana and, specifically, the Honourable Minister of Energy whose management has been paramount in attending to completion. This transaction underscores our confidence in the property and meets our objectives of worth accretion and deleveraging,” Rahul Dhir, CEO of Tullow Oil plc.
Tullow Oil plc is a multinational oil and gasoline exploration firm founded in Tullow, Ireland with its headquarters in London, United Kingdom. The company is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.
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