By Ebenezer SABUTEY
Partners in Ghana's Jubilee offshore oilfield, majority operated by Tullow Oil, have finally bought the Floating Production Storage and Offloading FPSO Kwame Nkrumah vessel from Tokyo-listed Modec, a reliable source from Ghana's state oil company GNPC revealed.
Sources close to the deal said the "Kwame Nkrumah" vessel, which was leased to the Jubilee partners for its first year of operation was valued at $750 million.
The agreement covering the FPSO, which can process 120,000 barrels of oil per day and has storage capacity of 1.6 million barrels, was concluded last December, Ghana National Petroleum Corporation source disclosed.
"It was a collective decision that we should acquire it after successfully running it for one year," the source stated, adding that Tullow executed the purchase agreement on behalf of the partners.
The information said each of the partners contributed proportionally to the purchase. "The contribution to the purchase becomes part of our development cost," he said.
Sources close to Tullow confirmed the transaction, adding that as with all other field-related infrastructure, the FPSO would become the property of Ghana after the cost is recovered.
UK energy company Tullow holds a 36.05 percent stake in the field. Other stakeholders include GNPC with 13.75 percent, private investment group Kosmos with 23.49 percent, Anadarko Petroleum Corp with 23.49 percent, and Sabre Oil and Gas with 2.81 percent.
The Jubilee field, with reserve estimates up to 2 billion barrels, came on stream in mid-December 2010 and is currently producing between 70,000 and 80,000 barrels per day.
Jubilee started pumping in December 2010 but a target of 120,000 barrels per day has been delayed in 2011 by technical problems. Tullow said last month it now hoped to reach that level in early 2012 and also bidding to procure another FPSO before the end of 2012 when it start to meet its target of production on the field.
Partners in Ghana's Jubilee offshore oilfield, majority operated by Tullow Oil, have finally bought the Floating Production Storage and Offloading FPSO Kwame Nkrumah vessel from Tokyo-listed Modec, a reliable source from Ghana's state oil company GNPC revealed.
Sources close to the deal said the "Kwame Nkrumah" vessel, which was leased to the Jubilee partners for its first year of operation was valued at $750 million.
The agreement covering the FPSO, which can process 120,000 barrels of oil per day and has storage capacity of 1.6 million barrels, was concluded last December, Ghana National Petroleum Corporation source disclosed.
"It was a collective decision that we should acquire it after successfully running it for one year," the source stated, adding that Tullow executed the purchase agreement on behalf of the partners.
The information said each of the partners contributed proportionally to the purchase. "The contribution to the purchase becomes part of our development cost," he said.
Sources close to Tullow confirmed the transaction, adding that as with all other field-related infrastructure, the FPSO would become the property of Ghana after the cost is recovered.
UK energy company Tullow holds a 36.05 percent stake in the field. Other stakeholders include GNPC with 13.75 percent, private investment group Kosmos with 23.49 percent, Anadarko Petroleum Corp with 23.49 percent, and Sabre Oil and Gas with 2.81 percent.
The Jubilee field, with reserve estimates up to 2 billion barrels, came on stream in mid-December 2010 and is currently producing between 70,000 and 80,000 barrels per day.
Jubilee started pumping in December 2010 but a target of 120,000 barrels per day has been delayed in 2011 by technical problems. Tullow said last month it now hoped to reach that level in early 2012 and also bidding to procure another FPSO before the end of 2012 when it start to meet its target of production on the field.
Comments