Tullow Oil agreed to buy the offshore Ghanaian interests of EO Group Limited for $305 million in cash and shares, increasing its stake in West Africa’s biggest oil discovery in a decade.
The acquisition will boost Tullow’s interest in the West Cape Three Points license by 3.5 percentage points to 26.4 percent, and the Jubilee oilfield by 1.75 percentage points to 36.5 percent, according to a statement issued by the company yesterday.
“This purchase further demonstrates Tullow’s long-term commitment to Ghana and our belief in its significant remaining potential,” the Chief Executive Officer (CEO) of the company, Aidan Heavey has said.
Tullow’s second deal of the week follows the 300 million Euro ($424 million) purchase of Nuon Exploration and Production BV, which boosted its North Sea output by 70 percent. Jubilee Oilfield, which is operated by Tullow, is pumping about 70,000 barrels of oil a day after production started last year.
Tullow’s partners in Ghana are Kosmos Energy Ltd., Anadarko Petroleum Corp., and Ghana National Petroleum Corporation (GNPC). Jubilee, which was discovered in 2007, is expected to produce the equivalent of 120,000 barrels a day by mid-year and has potential resources of about 1.8 billion barrels.
The West Cape Three Points block contains other assets that Tullow plans to develop.
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