Tullow Ghana Limited closes a US$23 million contract with Ghanaian Navy

GHANA – Tullow Ghana, an oil and gas producer, has signed a Memorandum of Understanding (MoU) with Ghana Navy for the provision of security for 5 years.

The MoU is for the contracting of a Ghanaian Navy vessel to provide security services at the Jubilee and the Tweneboa Enyenra Ntomme (TEN) oil fields.

A total of $23.5 million will be invested during the five-year contract period for these vessels by Tullow Ghana along with the Jubilee and TEN partners.

The five-year contract commenced on January 1, 2022, and would run until December 21, 2026.

Ghanaian Navy vessels acquired with funding from the GCB Bank, are expected to provide asset protection in the Exclusive Economic Zone (EEC) in the TEN and Jubilee fields.

The vessels, Flex Fighters, are essentially lightly armed and protected used to deliver supplies and personnel to offshore platforms.

The deal is expected to add an additional layer of safety and security in the Ghanian waters, allowing the company to continue operations in its offshore fields in the area.

A joint statement issued by Tullow and the Ghana Navy said, the vessel, which had been acquired for the Ghana Navy with funding from the GCB Bank, would provide asset protection in the Exclusive Economic Zone (EEZ) in the two fields.

“This partnership will ensure the protection of the Ghanaian waters by providing security services in the TEN and Jubilee fields and along the coast of Ghana,” the statement said.

Tullow stated that its offshore drilling campaign in Ghana was on track, with three of the four wells planned in 2021 being already on stream.

The firm also reported a significant improvement in operating performance as combined uptime.

At the time, Tullow’s data showed that the Jubilee field was producing around 28,700 bopd net to Tullow (gross approximately 81,000 bopd).

The company also informed that the Jubilee FPSO maintenance shutdown, which was originally scheduled for September 2021, is expected to take place in April 2022.

Based on the firm’s statement, this shift in timeline allows the work scope to be optimized and gas enhancement works previously planned for a 2023 shutdown to be accelerated.

This follows Tullow’s decision to exercise its right of pre-emption related to the sale of Occidental Petroleum’s interests in the Jubilee and TEN fields in Ghana to Kosmos Energy.

As a result, Tullow’s equity interests are expected to increase to 38.9 percent in the Jubilee field and 54.8 percent in the TEN fields.

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