BTA2023 UK-based oil and gas firm Tullow Oil has signed a Sale and Purchase Agreement to acquire the Prof. John Evans Atta Mills Floating Production, Storage and Offloading (FPSO) vessel for $205 million, in a strategic move aimed at reducing fixed costs and strengthening long-term value from its Ghana operations.
The transaction was executed by its wholly owned subsidiary, Tullow Ghana Limited, on behalf of itself and its joint venture partners. Completion is expected by the end of the first quarter of 2027, subject to regulatory approvals and other customary conditions.
Strengthening the TEN Fields
The FPSO serves as the production facility for the TEN (Tweneboa, Enyenra, Ntomme) fields located in the Deepwater Tano Block offshore Ghana. It is currently owned and operated by MODEC under a 10-year lease contract.
Once finalised, Tullow intends to integrate operations of the TEN fields more closely with the nearby Jubilee Field to unlock operational synergies and improve cost efficiency across its Ghana portfolio.
Tullow’s net share of the purchase price — approximately $125.6 million — is equivalent to about one year of current net lease costs and will be funded from in-year cash flows generated by the TEN fields.
Strategic Shift Toward Cost Efficiency
The acquisition aligns with Tullow’s strategy to optimise production and eliminate recurring lease payments tied to the FPSO. By owning the asset outright, the company expects to reset fixed costs at the TEN fields and extend their economic life beyond 2027.
Chief Executive Officer Ian Perks described the deal as “value accretive,” stating that removing annual lease costs would unlock additional free cash flow potential and strengthen the company’s long-term financial outlook.
“This transaction is another important milestone for Tullow,” he noted, adding that it reinforces the company’s strategic priority of delivering improved economics through operational efficiency.
Ghana Joint Venture Structure
Tullow Ghana Limited’s partners in the joint venture include:
- Ghana National Petroleum Corporation (GNPC)
- GNPC Explorco
- Kosmos Energy
- PetroSA
The Prof. John Evans Atta Mills FPSO, built by MODEC, achieved first oil in August 2016. It is the second MODEC vessel supporting Tullow’s Ghana operations, following the FPSO Kwame Nkrumah, which began production in 2010.
What This Means for Ghana’s Energy Sector
The acquisition signals confidence in Ghana’s offshore oil assets and reflects a broader industry trend of operators moving from leasing to asset ownership to improve cost structures.
For Ghana, the move could enhance operational stability at the TEN fields while supporting sustained oil production and government revenue streams in the medium to long term.
