Tullow Oil PLC and its companions have signed a memorandum of understanding (MOU) with Ghana’s authorities for the extension of the West Cape Three Factors (WCTP) and Deepwater Tano (DWT) offshore blocks, which include the manufacturing Jubilee and TEN fields.
The deal will prolong the licenses to 2040. The preliminary license for WCTP took impact July 2004 whereas that of DWT took impact March 2006, in keeping with info on the Petroleum Fee’s on-line register.
“The MOU contains approval to drill as much as 20 extra wells within the Jubilee area, representing funding of as much as $2 billion in Ghana over the lifetime of the licenses”, London-based Tullow mentioned in a web-based assertion. “Because of the extension the JV partnership expects to appreciate a cloth enhance in gross 2P [proven and probable] reserves”.
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The MOU features a pledge to boost fuel manufacturing from Jubilee, which straddles each blocks, and TEN, in DWT, to about 130 million customary cubic toes a day.
Jubilee, found 2007 and put onstream 2010, averaged round 87,000 barrels of oil per day (bopd) gross in 2024. Final yr 5 new wells – three producers and two injectors – grew to become operational, in keeping with Tullow.
Tullow operates Jubilee with a 38.98 p.c stake. Kosmos Power owns 38.61 p.c, Ghana Nationwide Petroleum Corp. (GNPC) 19.69 p.c and South Africa’s state-owned PetroSA 2.72 p.c.
TEN, which consists of the fields Tweneboa, Enyenra and Ntomme, produced roughly 18,500 bopd final yr, Tullow says on its web site. TEN got here on-line 2016.
Tullow can also be operator in TEN with a 54.84 p.c stake. Kosmos holds 20.38 p.c, GNPC 20.95 p.c and Petro 3.82 p.c.
Additionally agreed for the extension of the licenses are a value discount for related fuel from Jubilee, a assured reimbursement mechanism for fuel gross sales and “funding in GNPC and the Petroleum Fee’s capability with a concentrate on using superior know-how”, Tullow mentioned.
“All phrases and circumstances of the prevailing WCTP and DWT Petroleum Agreements stay in place and proceed unchanged”, it added.
“The following steps, following this MOU, are the submission for approval of a Jubilee Plan of Improvement Addendum, getting into into new totally termed fuel gross sales agreements, and the submission for parliamentary approval of the fee safety mechanism and license extensions deliberate earlier than the top of the third quarter of 2025”.
Power and Inexperienced Transition Minister John Abdulai Jinapor commented, “Extending the licenses to 2040 demonstrates our dedication to fostering a secure and engaging funding local weather”.
Tullow chief govt Richard Miller mentioned, “This extension and the fiscal stability of our contracts emphasizes the chance Ghana represents to ship extra worth by means of manufacturing and reserves additions, offering larger long-term optionality and materiality to those core belongings”.
To contact the creator, e-mail jov.onsat@rigzone.com
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