Tullow Oil has announced its second acquisition in the space of seven days—this time purchasing the interests of EO Group, which include those offshore Ghana.
The deal, worth $305 million, will increase Tullow's interest in the West Cape Three Points licence offshore Ghana by 3.5 per cent to 26.4 per cent. It will also increase its interest in the Jubilee Oil field, which it already operates, by 1.75 per cent to 36.5 per cent.
The agreement is conditional upon various approvals, including from the government of Ghana.
This is the second such deal that Tullow has announced this week, having announced on Tuesday that it is buying Nuon E&P from Sweden’s Vattenfall Group for €300 million, in a move designed to boost its presence in the Dutch North Sea.
Tullow has said that its main focus in 2011 is to increase production at Jubilee to 120,000 barrels a day.
Commenting, Aidan Heavey, Tullow's CEO, said: "This acquisition represents an excellent opportunity to extend our interest in these high-quality assets in Ghana. Following our exploration and production successes over the last few years, which culminated in First Oil in late 2010, this purchase further demonstrates Tullow's long-term commitment to Ghana and our belief in its significant remaining potential."
In Africa, Tullow already has production in Ghana, Gabon, Côte d'Ivoire, Mauritania, Congo (Brazzaville) and Equatorial Guinea with two large appraisal and development programmes in Ghana and Uganda.
Tullow also has exploration interests in Gabon, Côte d'Ivoire, Liberia, Sierra Leone, Mauritania, Senegal, Tanzania, Madagascar, Namibia, Kenya and Ethiopia.
