In an extraordinary flurry of corporate activity, London-listed Tullow Oil has executed three major deals in quick succession — buying a key offshore production vessel for $205 million, securing a sweeping debt refinancing deal, and locking in a government-backed extension of its core Ghanaian oil licenses to 2040.
The company signed a sale and purchase agreement to acquire the FPSO Prof. John Evans Atta Mills, the floating production, storage and offloading vessel that serves the TEN fields on Ghana’s Deepwater Tano block, for a gross consideration of $205 million (approximately $125.6 million net to Tullow). Completion is expected by the end of the first quarter of 2027, subject to regulatory approvals. The move is designed to eliminate annual lease payments and lower fixed operating costs, boosting free cash flow.
Simultaneously, Tullow entered into refinancing agreements with Glencore and holders of approximately two-thirds of its $1.3 billion in senior secured notes, extending debt maturities by over two years to November 2028. Executives said the deal stabilises the company’s capital structure and aligns it with anticipated 2026 operational milestones.
On the regulatory front, Ghana’s Parliament ratified the extension of Tullow’s West Cape Three Points and Deep Water Tano Petroleum Agreements — covering the Jubilee and TEN fields — through 31 December 2040. Under the new terms, Ghana National Petroleum Corporation’s (GNPC) share will increase by a further 10% from July 2036. Tullow also secured revised gas supply terms from the Jubilee field at an escalating price of $2.50/mmbtu, along with a payment security mechanism.
CEO Ian Perks described the parliamentary ratification as “a significant milestone which underpins Tullow’s long-term commitment to Ghana,” adding that it creates a stable investment environment and allows for continued development of the Jubilee and TEN assets.
Sources: worldoil.com | energy-pedia.com | bairdmaritime.com