Tullow Oil acquires TEN FPSO in a $205 million transaction aimed at reducing operational costs and strengthening long-term field economics offshore Ghana.
The London-listed independent energy company has signed a Sale and Purchase Agreement to acquire the floating production, storage and offloading vessel, FPSO Prof. John Evans Atta Mills, which serves the TEN fields on the Deepwater Tano block.
The acquisition, Tullow said, is part of a broader strategy to optimise production, improve asset economics and extend the economic life of its West African offshore portfolio.
According to the company, the gross consideration for the vessel is $205 million, with Tullow’s net share amounting to $125.6 million. The payment will be made upon completion of the transaction, expected at the end of the first quarter of 2027.
“Tullow signed a Sale and Purchase Agreement to acquire the TEN FPSO on behalf of the joint venture for a gross consideration of $205 million ($125.6 million net to Tullow), which is to be paid upon completion at the end of the first quarter of 2027.”
Tullow Oil
Tullow indicated that its share of the purchase price will be funded from in-year cash flow generated by the TEN asset, underscoring the project’s ability to support its own investment requirements.
“Following completion Tullow intends to maximise operational synergies with the adjacent Jubilee Field and drive further cost efficiencies which will underpin the longer-term development of the TEN and Jubilee fields.”
Tullow Oil
Strengthening the TEN Joint Venture
The FPSO Prof. John Evans Atta Mills serves as the primary production facility for the TEN fields, which are operated by Tullow alongside key partners.
These include the Ghana National Petroleum Corporation (GNPC), GNPC Explorco, Kosmos Energy and PetroSA.
By acquiring the FPSO outright on behalf of the joint venture, Tullow and its partners aim to eliminate annual lease payments that have historically formed part of TEN’s operating costs. The move is expected to reduce fixed expenses and improve free cash flow generation beyond 2027.
The Deepwater Tano block, offshore Ghana’s western coast, has been central to the country’s oil production since first oil from the TEN fields in 2016. The FPSO has played a critical role in processing and storing crude before export.
A key strategic driver behind the acquisition is the opportunity to align TEN operations more closely with those of the Jubilee Field, located nearby in Ghana’s offshore basin.
Tullow is operator of the TEN fields and co-operator of the Jubilee Field, one of Ghana’s flagship oil assets. The company believes greater integration between the two assets will unlock operational and cost efficiencies.
The transaction is expected to support longer-term development plans for both fields, as partners continue to assess infill drilling opportunities and production optimisation strategies.
By consolidating ownership of critical production infrastructure, Tullow aims to strengthen control over operational decisions and align cost management strategies across its Ghana portfolio.
Revised Gas Supply Terms Agreed
In addition to the FPSO acquisition, Tullow announced that it has secured revised terms for the supply of gas from the Jubilee Field through the end of the extended contract period.
Tullow and the Government of Ghana have also agreed on a gas payment security mechanism, alongside heads of terms for the potential supply of gas from TEN.
These agreements are expected to enhance revenue predictability and improve payment security, long-standing issues within Ghana’s energy value chain.
Company executives described the FPSO purchase as a strategic step within Tullow’s broader objective of portfolio optimisation in West Africa.
By eliminating lease obligations and reducing operating costs, the company expects to enhance asset resilience in a volatile global oil market environment. Improved cost structures could also strengthen Tullow’s balance sheet and investor confidence.
The acquisition signals a shift toward greater asset ownership and operational control in Ghana, reinforcing the country’s importance within Tullow’s global portfolio.
As the transaction progresses toward completion in 2027, industry observers will be watching closely to assess its impact on production levels, operating margins and long-term offshore development plans.
For Ghana, the deal underscores continued investor confidence in the offshore oil sector and highlights ongoing efforts by operators and government partners to improve project economics while sustaining production from mature assets.
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