Mergers & Acquisitions

Tullow Oil exercises pre-emption rights in Ghana and consolidates stake in key producing fields

The TEN fields produced an average of 30,400 bopd offshore Ghana in Q3 2021.

By

Tullow Oil has announced today that it has exercised its right of pre-emption related to the sale of Occidental Petroleum’s interests in Ghana’s Deep Water Tano (DWT) Block to Kosmos Energy.

As per the DWT Joint Operating Agreement (JOA), Tullow has pre-emption rights in respect of the 11.05% participating interest acquired by Kosmos Energy from Anadarko WCTP Company in the block last month.

Tullow’s pre-emption rights are now expected to increase its share in the license by 7.7% (to a total of 54.8%). This would in turn increase Tullow’s equity interests in the Jubilee and TEN fields to 38.9% and 54.8%, respectively.

Both fields are operated by Tullow Oil’s and are its most strategic assets. The company is currently executing a drilling campaign on both projects to increase output and has planned significant investment in their continued development until 2030.

“The additional equity is expected to increase Group daily production by c.10% and generate over $250 million incremental free cash flow at $65/bbl for Tullow between 2022 and 2026, which will help to accelerate debt reduction,” Tullow Oil said in a statement today.

Read more

African Development Bank Group and French Development Agency sign €2 billion co-financing partnership

On the sideline of the Paris Peace Forum this week, the African Development Bank Group (AdFB) and French Development Agency (AFD) have signed a €2 billion co-financing partnership agreement for Africa. The agreement covers the 2021-2026 period and targets €2 billion in the first three years only to complement the current partnership between both institutions. The existing partnership already covers such key sectors as infrastructure, water and sanitation, agriculture, and the private sector. The new agreement supersedes an earlier framework agreement signed in November 2015.

Tlou Energy to start producing green hydrogen in Botswana from 2022

While Tlou Energy continues to progress on its gas-to-power project north of Botswana’s capital Gaborone, it is now expecting to produce hydrogen and solid carbon products even before electricity. The company has been working on developing Botswana’s coal-bed methane (CBM) reserves to generate electricity since its incorporation in 2009. It is notably focusing on the development of the Lesedi project, consisting in a 10 MW gas-to-power plant and a 100km transmission line from Lesedi to Serowe. The power purchase agreement (PPA) was signed with the Botswana Power Corporation just a few weeks ago. But beyond just monetizing CBM, Tlou Energy has been working on adding solar generation capacity on site to combine large natural gas reserves with solar energy and produce green hydrogen. To execute this vision, Tlou Energy signed in August 2021 a Heads of Agreement (HOA) with Synergen Met, an Australian hydrogen developer and plasma technology company. The project is now moving full steam ahead and the prototype hydrogen production unit is currently being designed, built and tested in Brisbane before its transportation to Botswana in H1 2022, Tlou Energy said today. The use of plasma technology for hydrogen production will be a first for sub-Saharan Africa and open up additional doors for the continent to decarbonize its energy mix. Along with South Africa, Botswana is a country who continues to predominantly relies on coal to generate power for its industries and households. “Tlou Energy and Synergen Met intend to use the hydrogen produced from the prototype to generate electricity and possibly for transport fuel, initially in Tlou’s own vehicles. Solid carbon will be made available for regional consumers that require the product,” Tlou revealed today. Details on the Lesedi CBM Gas-to-Power Project are available in the “Projects” section within your Hawilti+ research terminal.