Tullow set to buy out Ghana partner

Tullow Oil has a conditional agreement to acquire EO Group’s interests offshore Ghana for $305 million.

Offshore staff

LONDON -- Tullow Oil has a conditional agreement to acquire EO Group’s interests offshore Ghana for $305 million.

Assuming approval from Ghana’s government, the acquisition will increase Tullow's share in the West Cape Three Points license by 3.5% to 26.4%. It will also lift the company’s interest in its operated Jubilee oil field by 1.75%, to 36.5%.

Tullow will raise around $216 million of the agreed figure by issuing new shares to EO, giving the latter the opportunity to retain an indirect interest in the upside potential of all Tullow's Ghanaian assets.

05/27/2011

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