Ghana’s offshore oil sector received a significant double boost this week, with Tullow Oil signing a $205 million deal to acquire the FPSO vessel serving the TEN fields, while partner Kosmos Energy confirmed that Ghana’s parliament has formally ratified license extensions for both the Jubilee and TEN offshore fields through 2040.
Tullow Ghana Limited, acting on behalf of the TEN joint venture, executed the sale and purchase agreement to acquire the FPSO Prof. John Evans Atta Mills for a gross consideration of $205 million — approximately $125.6 million net to Tullow. Completion is targeted for end of the first quarter of 2027, pending regulatory approvals. The acquisition will eliminate annual lease payments and reduce fixed operating costs at TEN, strengthening free cash flow beyond 2027, with Tullow intending to fund its share from in-year cash flow generated by the TEN asset itself.
The FPSO serves as the primary production facility for the TEN fields, where Tullow operates alongside Ghana National Petroleum Corporation (GNPC), GNPC Explorco, Kosmos Energy, and PetroSA. Company executives described the purchase as part of a broader strategy to optimize production and extend the economic life of Tullow’s West African offshore portfolio, including by unlocking operational synergies with the nearby Jubilee field.
On the parliamentary front, the ratification of license extensions through 2040 sets the stage for up to $2 billion in additional capital spending and expanded domestic gas supply for power generation. The amended Jubilee development plan includes up to 20 additional wells. The J74 well, brought online earlier this year, is producing approximately 13,000 barrels of oil per day, lifting gross Jubilee output to over 70,000 bopd in February. A five-well 2026 drilling campaign is already underway, with the first well expected onstream by end of the first quarter.
Kosmos also reported that Phase 1 of the Greater Tortue Ahmeyim (GTA) LNG project in Mauritania and Senegal shipped several cargoes in January and is producing above nameplate capacity, averaging roughly 2.9 million tonnes per annum year-to-date. On the financial side, Kosmos recently completed a $350 million Norwegian bond offering and used part of the proceeds to reduce borrowings under its reserve-based lending facility.
Source: worldoil.com