The London-headquartered energy company Tullow Oil plc (Tullow) has announced that its wholly-owned subsidiary Tullow Ghana Limited (TGL) on behalf of itself and its joint venture (JV) partners has signed a sale and purchase agreement (SPA) with T.E.N. Ghana MV25 BV to acquire the floating production, storage and offloading vessel (FPSO) Prof. John Evans Atta Mills.

Tullow said the gross price is $205m (c.$125.6m net to Tullow), and will be paid upon completion of the transaction at the end of the first quarter of 2027.

TGL, as operator of the TEN fields on the Deep Water Tano Block located offshore Ghana, has signed a SPA to acquire the TEN FPSO on behalf of itself and its JV partners, Ghana National Petroleum Corporation, GNPC Explorco, Kosmos Energy and PetroSA. According to Tullow, the completion of the purchase is subject to the satisfaction of conditions precedent and relevant regulatory approvals.

Ian Perks, chief executive officer of Tullow, commented: “The acquisition of the FPSO will deliver material cost savings by removing the annual lease cost and resetting our fixed costs at the TEN fields. By extending the economic life and removing the annual lease cost we will create additional free cash flow potential for the company beyond 2027. This transaction is another key deliverable for Tullow, strengthening the foundations for future value creation.”