Tullow Oil’s second commercial oil and gas project in Ghana made significant progress this month when the Centennial Jewel trading tanker arrived in the Jurong Shipyard in Singapore. Here it will begin its conversion into the floating, production, storage and offloading vessel (FPSO) for the Tweneboa, Enyenra and Ntomme (TEN) Project, off the west coast of Ghana.
The vessel was navigated into the port with the help of a number of tug boats on October 16. It will be converted over the course of the next two years. The tanker will become Ghana’s second FPSO, the first being FPSO: Kwame Nkrumah, currently producing crude oil from the Jubilee Field.
The Government of Ghana in May this year formally approved the Development Plan for the TEN Project. The TEN Project is located in the Deepwater Tano Contract Area, 60 kilometres off the coast of Ghana and approximately 30 kilometres west of the Tullow Operated Jubilee Field. The TEN Project is expected to deliver first oil in 2016, with a plateau production rate of 80,000 bopd. Development of the TEN Project will require the drilling and completion of up to 24 development wells which will be connected through subsea infrastructure to a Floating, Production, Storage and Offloading vessel (FPSO), moored in approximately 1,500 metres of water.
Tullow is Operator of the Deepwater Tano Contract Area with an equity interest of 47.175%. Other partner interests are Kosmos Energy (17%), Anadarko Petroleum (17%), Sabre Oil & Gas Holdings Ltd, a wholly owned subsidiary of Petro SA (3.825%), and the Ghana National Petroleum Corporation (15%).
$500 mln in senior notes
Also, in a statement issued today, Tullow said it intends to offer $500 million in aggregate principal amount of senior notes due 2020. The Notes, whose net proceeds will be used to repay certain existing indebtedness under the Company’s credit facilities (but not cancel commitments under such facilities), will be the senior obligations of the company and guaranteed by certain of the company’s subsidiaries. Interest will be payable semi-annually. The interest rate, offering price and other terms will be determined at the time of pricing of the offering, subject to market conditions.