(WO) – Tullow Oil has signed a sale and purchase agreement to acquire the floating production, storage and offloading (FPSO) vessel serving the TEN fields on the Deepwater Tano block offshore Ghana, in a move aimed at reducing costs and improving long-term field economics.
The agreement, executed by Tullow Ghana Limited on behalf of the TEN joint venture, provides for the acquisition of the FPSO Prof. John Evans Atta Mills for a gross consideration of $205 million, equivalent to approximately $125.6 million net to Tullow. Completion is expected at the end of first-quarter 2027, subject to regulatory approvals and customary conditions.
The FPSO is the production facility for the TEN fields, where Tullow is operator alongside partners Ghana National Petroleum Corporation (GNPC), GNPC Explorco, Kosmos Energy and PetroSA.
Tullow said the acquisition will eliminate annual lease payments and lower fixed operating costs at TEN, supporting improved free cash flow beyond 2027. The company expects to fund its share of the purchase price from in-year cash flow generated by the TEN asset.
The transaction also is expected to enhance operational synergies with the nearby Jubilee field, where Tullow is co-operator, as the partnership continues to advance long-term development plans offshore Ghana.
Company executives described the FPSO purchase as part of Tullow’s broader strategy to optimize production, strengthen asset economics and extend the economic life of its West African offshore portfolio.
The FPSO transaction follows recent developments across the TEN and Jubilee partnership. Earlier this week, partner Kosmos Energy confirmed Ghana’s parliamentary ratification of license extensions for the Jubilee and TEN fields through 2040, alongside ongoing drilling and production growth across the assets.
