Tullow Oil plc has signed a tentative agreement to extend until 2040 the West Cape Three Points and Deepwater Tano licences, covering the Jubilee and TEN fields, offshore Ghana.
OPPORTUNITY
The TEN project comprises the three offshore fields of Tweneboa, Enyenra and Ntomme, which lie in the Deepwater Tano block, 60 kilometres offshore Western Ghana.
Jubilee is located between the Deepwater Tano and West Cape Three Points blocks.
The memorandum of understanding is with the Government of Ghana, Dallas-based Kosmos Energy, PetroSA of South Africa, Ghana National Petroleum Company and Explorco.
The agreement includes approval to drill up to 20 additional wells in Jubilee for up to $2 billion over the life of the licences.
The partners will also commit to increase the supply of gas from Jubilee and TEN to circa 130 million standard cubic feet per day and reduce the gas price for Jubilee associated gas.
The companies expect to submit a Jubilee development plan for approval, enter new gas sales agreements and submit the licence extensions for parliamentary approval.
Chief financial officer and interim chief executive, Richard Miller said that the MoU reflected the partners’ collaborative and constructive relationship.
“This extension and the fiscal stability of our contracts emphasises the opportunity Ghana represents to deliver additional value through production and reserves additions, providing greater long-term optionality and materiality to these core assets.”