Tullow Oil PLC completed preemption related to the sale of Occidental Petroleum’s interests in Tullow-operated Jubilee and TEN fields in Ghana to Kosmos Energy (OGJ Online, Oct. 25, 2021; Nov. 11, 2021) .
Cash consideration of $118 million was paid on completion, the company said in a release Mar. 21.
As of Dec. 31, 2021, the transaction increases Tullow’s net 2P reserves by about 21 MMboe and takes Tullow’s equity interests to 38.9% in Jubilee field and to 54.8% in TEN fields and adds about 5,000 b/d of unhedged daily production. This equates to about 4,000 b/d on an annualized basis and increases 2022 Group production guidance to 59,000-65,000 b/d (30,000-32,000 b/d at Jubilee, 13,000-14,000 b/d at TEN, and non-op portfolio unchanged at 16,000-19,000 b/d.
Operations
In preliminary estimates detailed in the company’s full-year 2021 results released Mar. 9, the company outlined 2022 plans for the fields.
Three new wells at Jubilee and three new wells at the TEN fields are planned, including two wells at TEN to further define future development plans, as well as investment in infrastructure for the undeveloped Jubilee South East and North East areas.
Kosmos’ ultimate interest in Jubilee is reduced by 3.8% to 38.3% and Kosmos’ ultimate interest in TEN is reduced by 8.3% to 19.8%.
About the Author
Alex Procyk
Upstream Editor
Alex Procyk is Upstream Editor at Oil & Gas Journal. He has also served as a principal technical professional at Halliburton and as a completion engineer at ConocoPhillips. He holds a BS in chemistry (1987) from Kent State University and a PhD in chemistry (1992) from Carnegie Mellon University. He is a member of the Society of Petroleum Engineers (SPE).