Global law firm Ashurst has advised Tullow Oil (‘Tullow’) on the pre-emption related to the sale of Occidental Petroleum’s interests in the Jubilee and TEN fields in Ghana to Kosmos Energy. The cash consideration paid on completion was US$118 million reflecting closing adjustments and was funded from cash on the balance sheet.
This transaction takes Tullow’s equity interests to 38.9% in the Jubilee field and to 54.8% in the TEN fields and adds circa 5 kbopd of unhedged daily production. This equates to circa 4 kbopd on an annualised basis and increases 2022 Group production guidance to 59-65 kbopd (30-32 kbopd at Jubilee, 13-14 kbopd at TEN and non-op portfolio unchanged at 16-19 kbopd).
The Ashurst team was led by energy and infrastructure M&A partner Michael Burns, together with partners Richard de Carle and Harry Thimont, and assisted by senior associates Quentin Robinson, Naomi Nguyen and associate Riddhi Kumar. Tax advice was provided by partners Tim Gummer, Nicholas Gardner and associate Martin Voelker. Partner Tom Cummins, senior associate Harsh Hari Haran and associate Matthew Harnett also advised.
Commenting on the transaction, Michael Burns said: “We are delighted to work with Tullow on this significant transaction. It’s an important deal for Ghana and one that we’re very pleased to be involved with.”
