Tullow Oil says it expects to generate $600 million in operating cashflow this year as it increases its stake in the Jubilee and Ten fields in Ghana.
London-listed Tullow has exercised its right of pre-emption related to the sale of Occidental Petroleum's interests in the Jubilee and Ten fields in Ghana to Kosmos Energy. As a result, Tullow's equity interests are expected to increase to 38.9 per cent in the Jubilee field and 54.8 per cent in the Ten fields.
In a trading update, Tullow said its full-year production guidance remains unchanged with a range of 58,000-61,000 boepd (barrels of oil equivalent per day).
Rahul Dhir, Tullow Oil's chief executive, said the company delivered strong operational performance across both Jubilee and Ten this year and the Ghana drilling programme continues to be successful.
“Our decision to pre-empt Kosmos Energy’s acquisition of Occidental Petroleum’s interests in the Deep Water Tano licence underscores our belief in the value and growth potential of our assets in Ghana,” he added.
“I am pleased to have welcomed Phuthuma Nhleko into the Tullow team as chairman-designate and we look forward to working with him over the coming years as we execute our strategy and reach Net Zero by 2030,” he said.