Dhir said the Glencore debt and Tullow’s cash, in addition to $800mn of free cash flow from 2023 to 2025, would “allow us to fully address all outstanding 2025 notes”.
“Our business continues to be undervalued because of the perceived debt overhang,” CEO Dhir said.
“This triumph augments our confidence in other prospects across the nation,” he said. He singled out the potential of further investments in Tullow’s TEN project.
In Cote d’Ivoire, the independent is planning to drill an exploration well in 2024 on CI-524. The company has also secured a new licence in the country, CI-803, where it sees insights from its Tano Basin knowledge.
“With higher production and lower capital, free cash flow is expected to rise into 2024 providing multiple pathways for the company to deliver value for our shareholders.”
Ghanaians should treat Mahama’s suggestion “with the utmost contempt it deserves”, the statement concluded.
Asante commented that the plant would help supply gas in a cost effective fashion, securing a “reliable supply of gas and derivatives” in Ghana and beyond.
Tullow Oil expects to begin drilling wells on Jubilee South East this quarter, with the aim of boosting production beyond 100,000 barrels per day in 2025.
Four companies are due to drill exploration wells in Ghana during the last quarter of this year, according to a government report. The Public Interest Accountability Committee (PIAC) also raised some concerns over tax payments by state-owned Ghana National Petroleum Corp. (GNPC).
Tullow Oil remains committed to its merger with Egypt-focused Capricorn Energy, which has faced mounting headwinds.
As Tullow Oil works to execute its merger with Capricorn Energy, the company is focusing on growth projects.
Tullow Oil increased emissions in 2021 amid delays in installing gas capturing equipment offshore Ghana.
Amid higher oil prices, Tullow Oil is beginning to scale up its growth plans once more, raising near term possibilities for drilling around TEN and further out plans for gas and Kenya.
Kosmos Energy is scaling up spending to $700 million this year, from $460mn in 2021, on both its base producing business and its LNG project with BP.
Tullow Oil’s shift to a more conservative stance is paying off, it seems, with debt down and cash flow on the rise.
Tullow Oil has pre-empted the sale of Occidental Petroleum’s stake in the Jubilee and TEN fields to Kosmos Energy, in Ghana.
As majors shift out of mature West African assets, new opportunities may attract large independents to enter the area.
Kosmos Energy and Ghana National Petroleum Corp. (GNPC) have bought out Occidental Petroleum’s stake in the Jubilee and TEN fields.
Tullow Oil has cut the amount it expects to produce this year, but is likely to approve the Simba development in Gabon later this year.
TechnipFMC has been awarded a “significant” contract for the Tullow Oil Jubilee South East development offshore Ghana.
Kosmos Energy is getting back to work offshore Africa, in Ghana and with three wells planned this year for Equatorial Guinea.
Tullow Oil has launched its drilling programme in Ghana, spudding a first well on the Jubilee field on April 5.
Tullow Oil has reported a post-tax loss of $1.22 billion for 2020, with production to continue sliding in 2020.
Tullow Oil expects production to continue declining in 2021 as its Ghanaian assets continue to slide.