“The wider refinancing continues, and while the overall cost of the debt has increased, the maturity of the debt has been extended, which takes pressure off the balance sheet in the near term,” Kelty said.
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.
The Jubilee field averaged 80,800 bpd in the fourth quarter of 2022. It fell in the first quarter of reduced water injection. Kosmos Energy reported previously that JSE would increase Jubilee to more than 110,000 bpd by the end of 2023.
ONGC Videsh is reconsidering taking a stake in Tullow Oil’s Kenya assets following the exit of other partners in the project.
Tullow expects the operator to carry out new drilling in 2025. The plans is for seven infill wells, two producers on West Espoir and two producers and three injectors on East Espoir.
Africa Oil did extract value from its Kenyan finds in 2016, though, with a partial sale to Maersk Oil, under which it received $427mn.
“The first well in the main field is starting up shortly. The build up to 110,000 bpd is clearly laid out and the activity set is on plan. The well rates are consistent – and slightly ahead of pre-drill estimates.”
Signing the MoU in early April, Gabon said Perenco was investing around $40 million in infrastructure. Gabon Power will put in around $84mn.
Appraisal drilling in the DE8 licence is also under way. Tullow said this could begin producing oil via Tchatamba infrastructure before the end of 2023. There are also more ILX opportunities on the DE8 licence.
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.
While work in C2 is just beginning, the MPME said Shell was planning to drill another licence in the coastal area before the end of 2023.
Tullow Oil is seeking arbitration over $387 million in tax assessments it received from Ghana, part of the cash-strapped government’s review of past payments by some of the West African nation’s largest companies.
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.
Smith noted the opposition from shareholders to the Tullow merger. “The message from shareholders was that there was a preference for cash returns over long-term delivery. We listened to that and [the NewMed deal] offers a lot of cashback, while also being energy transition led.”
Tullow Oil has signed a licence for a new block offshore Cote d’Ivoire, adjacent to a licence it already controls.
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.
Africa Oil (TSX:AOI) expects a number of developments in the next month or so, including the spud of the Gazania well, an extension to its licence in Nigeria and the signing of a Kenya deal.
Tullow Oil remains committed to its merger with Egypt-focused Capricorn Energy, which has faced mounting headwinds.
Tullow Oil has come under fire in Ghana over alleged failure to abide by local content regulations – charges the company denies.
Tullow Oil has applied to cancel the listing of its ordinary shares on the Dublin market, saying the move would simplify compliance requirements.
Amid mounting opposition from some investors to its proposed merger with Tullow Oil, Capricorn Energy is “assessing all options to maximise value for shareholders”.