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Tullow in $305m Ghana deal

TULLOW Oil, the Dublin and London-listed explorer, has agreed to pay Ghanaian company EO $305m (€216m) for its oil interests off the coast of Ghana, in a deal that will raise Tullow's exposure to the company's key Jubilee oil field.

It is the second significant deal announced by Tullow this week. The company said on Tuesday that it wanted to buy Dutch oil fields in the North Sea for a similar amount to that of the Ghanaian purchase.

The firm, which started in the North Sea but is mainly focussed on Africa these days, said yesterday that it would issue new shares worth $216m to EO and pay the balance in cash, giving it an extra 1.75pc stake in the Jubilee oil field, a Tullow oil field which is one of the biggest finds in the world in recent years.

"This purchase further demonstrates Tullow's long-term commitment to Ghana and our belief in its significant remaining potential," said Tullow's chief executive Aidan Heavey.

The acquisition increases Tullow's interest in the West Cape Three Points block by 3.5pc to 26.4pc and in the Jubilee oil field by 1.75pc to 36.5pc. (Additional reporting Reuters)

Irish Independent