Latest news with #TullowOil
Zawya
23-07-2025
- Business
- Zawya
Tullow Oil signs $120m Kenyan assets sale deal to Gulf Energy
Tullow Oil Plc has signed a sale and purchase agreement with Auron Energy E&P Limited, an affiliate of Gulf Energy Ltd, to divest its entire interest in Kenya for a minimum cash consideration of $120 million. The deal, which marks an exit of the London-based firm from the country, was executed through Tullow Overseas Holdings BV, a wholly owned subsidiary of Tullow Oil Plc. Gulf Energy will act as guarantor for Auron Energy, while Tullow will guarantee the seller's obligations.'We are pleased to announce the signing of the Kenyan SPA (sale and purchase agreement), marking another step closer to completion of the transaction with Gulf Energy. For a total consideration of at least $120 million, the transaction supports our strategic priority to strengthen the balance sheet, with the first two payments totalling $80 million expected before the end of the year,' said Richard Miller, Tullow's chief financial officer and interim chief executive officer. The transaction involves the transfer of 100 percent of the shares in Tullow Kenya BV, the entity that holds all of Tullow's Kenyan assets. These assets include approximately 463 million barrels of potential oil reserves. The deal will be split into a $40 million payment due on completion, $40 million payable at the earlier of Field Development Plan (FDP) approval or June 30, 2026, and $40 million payable over five years from the third quarter of 2028 onwards. An FDP outlines how an oil company intends to develop a petroleum field, manage the impact on the environment and society, as well as give forecasts for production and costs.'In addition, Tullow will be entitled to royalty payments, subject to certain conditions. Tullow also retains a no-cost back-in right for a 30 percent participation in potential future development phases. This right can be exercised if a third-party investor participates in future development phases, whether through a sale or farm-down of the purchaser's interest in the assets,' Tullow said. In addition to transferring the assets, Auron Energy will assume all past and future decommissioning responsibilities and material environmental liabilities associated with the Kenyan operations, except for a single outstanding community petition, which remains Tullow's responsibility. The completion of the deal is subject to the approval of the Competition Authority of Kenya, and the successful physical and functional separation of Tullow Kenya from the wider Tullow group. Tullow expects the deal to be finalised later in 2025, with the first payment received upon closing and subsequent payments aligned with key project milestones. Tullow began exploring for oil in Kenya in 2010, having partnered with Africa Oil and Centric Energy to acquire interests in five onshore licences. Their first significant exploratory drilling occurred in early 2012, culminating in the discovery of oil at the Ngamia-1 well in Turkana County. This marked Kenya's first confirmed oil find. These early efforts put Kenya on the path towards becoming an oil-producing nation. The delays in full-scale production stemmed from a combination of infrastructure, regulatory, and financial challenges. In 2023, the withdrawal of Tullow's joint venture partners, TotalEnergies and Africa Oil, left it as the sole operator and funder of the project, increasing financial pressure. © Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (
Zawya
22-07-2025
- Business
- Zawya
Eni declares Eban-Akoma complex in Ghana commercially viable
Ghana's oil and gas sector is showing signs of resurgence, with Eni's recent declaration of commerciality for the Eban-Akoma complex in Cape Three Points Block 4. The find, estimated to hold between 500 and 700 million barrels of oil equivalent, is the country's largest offshore discovery in years and lies adjacent to Eni's existing Sankofa production hub. The African Energy Chamber (AEC) supports this development as a significant step forward in Ghana's upstream revival. Last month, Tullow Oil and Kosmos Energy, along with partners PetroSA, Ghana National Petroleum Company (GNPC), and Explorco, signed a Memorandum of Understanding to secure the extension of petroleum licenses in the Jubilee and TEN fields through 2040. This agreement underscores the country's institutional capacity to drive and sustain long-term energy growth. The renewed focus on production-led investment is at the center of both developments. Eni is preparing a development plan to bring its new find online, while Tullow and Kosmos have committed up to $2 billion to drill 20 new wells in Jubilee. These investments are anchored in existing infrastructure, supported by regulatory clarity, and structured to deliver returns for investors and the Ghanaian state. Energy security is central to both projects, as Eni already supplies a large portion of Ghana's domestic gas needs. Under the extended production license agreement, Tullow and Kosmos have committed to delivering 130 million standard cubic feet of gas per day from the Jubilee and TEN fields, supported by a restructured pricing and payment model that enhances access for power producers and industrial users. Ghana's institutional capacity also stands to benefit from partnerships between Eni, Tullow and Kosmos and national bodies like GNPC and the Petroleum Commission. Eni's ongoing expansion and drilling programs are expected to directly and indirectly support thousands of jobs across engineering, logistics, fabrication, and services, while creating new opportunities for Ghanaian companies to play a greater role in the oil and gas value chain. 'Ghana is proving that a clear regulatory environment, strong national institutions and consistent political will can unlock real energy growth,' said NJ Ayuk, Executive Chairman of the AEC. 'The Eban-Akoma discovery and the government's smart approach to extending production at Jubilee and TEN are exactly the kinds of moves that send a message to global investors: Ghana is open for business and serious about long-term energy security.' Copyright 2024 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (
Zawya
19-07-2025
- Business
- Zawya
Upstream Momentum Builds in Ghana as Eni Declares Eban-Akoma Commercial and Tullow, Kosmos Extend Licenses
Ghana's oil and gas sector is showing clear signs of resurgence, underscored by Eni's recent declaration of commerciality for the Eban-Akoma complex in the Cape Three Points Block 4. Estimated to hold between 500 and 700 million barrels of oil equivalent, the find marks the country's largest offshore discovery in years and lies adjacent to Eni's existing Sankofa production hub, allowing for rapid and cost-efficient development. The African Energy Chamber (AEC), as the voice of Africa's energy sector, welcomes and strongly supports this development as a significant step forward in Ghana's upstream revival. Together with other recent industry milestones – including 15-year license extensions granted to Tullow Oil and Kosmos Energy – it signals growing confidence in Ghana's potential and stands as a testament to the bold measures taken by President John Mahama's administration to restore momentum and investor trust in the sector. Ghana Secures Long-Term Energy Commitments Last month, Tullow Oil and Kosmos Energy – alongside partners PetroSA, Ghana National Petroleum Company (GNPC) and Explorco – signed a Memorandum of Understanding to secure the extension of petroleum licenses in the Jubilee and TEN fields through 2040. While the Eban-Akoma discovery points to Ghana's geological upside, the agreement with Tullow and Kosmos underscores the country's institutional capacity to drive and sustain long-term energy growth. At the center of both developments is a renewed focus on production-led investment. Eni is preparing a development plan to bring its new find online, while Tullow and Kosmos have committed up to $2 billion to drill 20 new wells in Jubilee. These aren't speculative ventures – they're anchored in existing infrastructure, supported by regulatory clarity and structured to deliver returns for both investors and the Ghanaian state. The resulting uplift in oil and gas production will expand the country's revenue base through GNPC equity, royalties and taxes – laying the groundwork for greater investment in national development priorities such as healthcare, education and infrastructure. Crucially, Ghana's ability to secure long-term upstream commitments also sends a strong signal to global markets that the country is stable, serious and investment-ready. Expanded Output to Power Industry and Jobs Energy security is also central to both projects. Eni already supplies a large portion of Ghana's domestic gas needs, and Eban-Akoma will enhance that capacity. Under the extended production license agreement, Tullow and Kosmos have committed to delivering 130 million standard cubic feet of gas per day from the Jubilee and TEN fields, supported by a restructured pricing and payment model that enhances access for power producers and industrial users. These volumes are vital for stabilizing the power sector, strengthening energy-intensive industries and supporting job creation. With sustained drilling and field optimization, Ghana's proven and probable reserves will continue to grow, further strengthening its resource base and outlook. Ghana's institutional capacity also stands to benefit. Partnerships between Eni, Tullow and Kosmos and national bodies like GNPC and the Petroleum Commission include frameworks for knowledge transfer, technical support and regulatory alignment – all of which strengthen the country's ability to manage its energy resources. Eni's ongoing expansion, along with Tullow and Kosmos' drilling programs, is expected to directly and indirectly support thousands of jobs across engineering, logistics, fabrication and services, while creating new opportunities for Ghanaian companies to play a greater role in the oil and gas value chain. 'Ghana is proving that a clear regulatory environment, strong national institutions and consistent political will can unlock real energy growth,' said NJ Ayuk, Executive Chairman of the AEC. 'The Eban-Akoma discovery and the government's smart approach to extending production at Jubilee and TEN are exactly the kinds of moves that send a message to global investors: Ghana is open for business and serious about long-term energy security.' As Ghana works to revitalize its upstream sector and accelerate economic growth, these commitments represent crucial milestones that strengthen the country's reputation as a dependable oil and gas producer while driving energy security, building institutional capacity, creating jobs and fueling sustainable development. Distributed by APO Group on behalf of African Energy Chamber.
Bloomberg
14-07-2025
- Business
- Bloomberg
Tullow and Kenya's Gulf Energy Win Extension for Oil-Field Plan
Tullow Oil Plc and Gulf Energy Ltd. won an extension to submit a development plan for fields in Kenya, a crucial step to completing a sale of the assets. Tullow agreed to sell the oil deposits to the Nairobi-based trading firm in April, after struggling for more than a decade to bring them on stream. The $120 million deal was welcomed by investors eager to see Tullow's debts come down, but it's dependent on submission of a plan to get the oil flowing.
TimesLIVE
10-07-2025
- Business
- TimesLIVE
Ghana warns of power cuts while Italy's Eni works to boost gas supply
Italian energy group Eni will temporarily suspend operations at a gas plant in Ghana on Sunday to implement a supply increase, likely resulting in power cuts, the West African country said on Wednesday. Ghana, the world's second biggest cocoa producer, has been trying to ramp up oil and gas production to increase revenues and prevent fossil fuels from becoming stranded. It has reached a deal with Eni to increase natural gas supply by 30-million standard cubic feet per day to 270-million, the energy ministry said in a statement on X on Wednesday. To facilitate the upgrade, Eni will temporarily halt some operations, resulting in "an impact on the availability of gas for power generation", the statement said. Speaking at an event on Monday in the southern city of Kumasi, energy minister John Jinapor said Ghana was "likely to experience some interactions or interruption of power" while the plant was offline. "Once the work is done, we shall stabilise supply of gas, increase gas production and that will improve the delivery of power," he said. Eni's Offshore Cape Three Points project off Ghana's Atlantic coast meets 65% of the country's energy demand, according to the Italian company's website. Last week, Tullow Oil said in a statement it was planning to increase the supply of gas from its Jubilee and TEN projects to about 130-million standard cubic feet per day.
