British oil and gas company Tullow Oil has signed a sale and purchase agreement with TEN Ghana to acquire the “John Evans Atta Mills” floating production storage and offloading (FPSO) vessel for $205 million.
The acquisition was completed by Tullow Ghana, a wholly-owned subsidiary of Tullow Oil, on behalf of itself and its TGL joint venture partner. The transaction is expected to close by the end of the first quarter of 2027. This type of FPSO is currently owned and operated by Modec under a ten-year contract.
The partners in the TGL joint venture project include: Ghana National Petroleum Corporation (GNPC), GNPC Explorco, Kosmos Energy, and PetroSA.
The net consideration assumed by Tullow Oil is approximately $125.6 million, equivalent to about one year’s net lease cost, which will be paid by TEN’s current cash flow.
This type of FPSO is a production facility for the TEN oil field in the Tano Block, an offshore deepwater area in Ghana. Built by Modec, it achieved its first production in August 2016. Following the transaction, Tullow Oil plans to maximize operations and drive further cost optimization through synergistic operations with the adjacent Jubilee oil field, laying the foundation for the long-term development of both the TEN and Jubilee fields.
This type of FPSO is a production facility for the TEN oil field in the Tano Block, an offshore deepwater area in Ghana. Built by Modec, it achieved its first production in August 2016. Following the transaction, Tullow Oil plans to maximize operations and drive further cost optimization through synergistic operations with the adjacent Jubilee oil field, laying the foundation for the long-term development of both the TEN and Jubilee fields.
A representative from Tullow Ghana stated, “Acquiring this type of FPSO will eliminate annual lease costs and reset the fixed costs of the TEN oilfield, resulting in significant cost savings. By extending the economic life and eliminating annual lease expenses, the company will unlock more free cash flow potential beyond 2027.”