Tullow Oil enters MOU to extend Ghanian licences

(Sharecast News) - Exploration firm Tullow Oil revealed on Wednesday that it had entered into a Memorandum of Understanding to extend the West Cape Three Points and Deep Water Tano licences to 2040. The Government of Ghana, Tullow Oil, Kosmos Energy, PetroSA, Ghana National Petroleum Company and Explorco all reached the agreement, which covers the Jubilee and TEN fields in Ghana.

Tullow said the MOU includes approval to drill up to 20 additional wells in the Jubilee field, representing an investment of up to $2.0bn in Ghana over the life of the licences. As a result of the extension, the JV partnership expects to realise "a material increase" in gross 2P reserves.

The London-listed firm said that next steps, following the MOU, were the submission for approval of a Jubilee Plan of Development addendum, entering into new fully termed gas sales agreements, and the submission for parliamentary approval of the payment security mechanism and licence extensions, planned before the end of the Q325.

As of 0940 BST, Tullow Oil shares were up 3.65% at 15.63p.





Reporting by Iain Gilbert at Sharecast.com