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Tullow oil prepares to sell stake in TEN in Ghana

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Tullow Oil Plc. has reiterated its intensions to sell part of its shares in the TEN Project on the Jubilee oil field area.

The Plan of Development for the TEN project which includes the collective development of three hydrocarbon accumulations -Tweneboa, Enyenra and Ntomme (TEN) - is under review at the Ministry of Energy and Petroleum.

Tullow currently has about 50 percent of the stake in that field but has planned to sell part of the stake when it finally receives approval.

According to Tullow, this will enable the company cut down on the risks associated with its current stake in the field.

The rest shared among Anadarko and Kosmos with each having 18 per cent and the Ghana National Petroleum Corporation (GNPC) and Sabre oil and Gas with 10 and 4.05 per cent share respectively.
The TEN project is about 25 kilometers off the Jubilee Field.

The company’s Head of Media Relations George Cazenove revealed this in an interview with some journalists here in Accra.

“50 percent stake would be too high it’s just too much. But any sale of the stake in TEN will be done with the government and will be done with the GNPC (Ghana National Petroleum Corporation). You couldn’t do a big deal like that without working with the government, with a natural resource like this…”

The GNPC is entitled to prior notification of any partner's decision to offload its stake in a field and the government of Ghana, through the corporation, has a first right of refusal, according to the Petroleum Agreement (PA).

In an earlier interview, Tullow Chief Executive, Aidan Heavey told Dow Jones Newswire that the company had already been approached by buyers for TEN but declined to name the potential buyers.
Heavey said, “It’s a sellers market. We have a lot of interest, but we’re very well financed so we have no pressure and no target date.”

The current estimated capex cost for the base development plan of the TEN project, which includes around 23 injection and production wells, is estimated to be around US$4.5bn.


By: citifmonline.com/Ghana

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