Tullow Oil to concentrate on African projects with $1.5bn spend
TULLOW Oil expects to spend $1.5bn (€1.13bn) on capital projects this year with about 90pc to be spent in Africa, Tullow executive Tim O'Hanlon (below) told an oil conference in Paris yesterday.
The oil exploration company said Kosmos Energy will remain involved in Ghana's Jubilee oilfield project until at least the first crude is produced later this year.
The planned sale of Kosmos's Ghanaian assets, including a stake in the offshore Jubilee field, to Exxon Mobil has "stalled," Mr O'Hanlon added. The failure to complete the sale hasn't delayed the development of Jubilee, he said.
Shares in Tullow fell 2.8pc to €14.40 in Dublin.
The sale of Kosmos's assets to Exxon Mobil was thrown into doubt last year after Ghana's state-run energy company said it had a prior agreement to buy the fields. Dallas-based Kosmos, which is backed by Blackstone Group and Warburg Pincus, had said that the $4bn deal to sell its 23pc stake in Jubilee to Exxon Mobil was exclusive.
"Kosmos has a declared business plan, they are excellent oil finders and that is their technical niche in the oil business," Mr O'Hanlon said.
"They are owned by venture capital funds that have a shorter-term exit strategy, normally before expenditure for development occurs. They have a right to choose and certainly to change their business plan and they may well be doing that." (Bloomberg)