Tullow Oil and Partners renegotiate Gas Sales agreement with Government
In a significant stride, Tullow, in concert with its joint venture partners, has successfully renegotiated with Government the Interim Gas Sales Agreement. The revised agreement, pegged at an impactful $2.90 per million British thermal units (mmbtu), aligns with the Jubilee gas pricing framework elucidated in the 2017 Jubilee Plan of Development.
Envisioned to extend its influence until the culmination of the third quarter in 2023, this amendment’s implications are far-reaching. Importantly, parallel discussions are advancing towards a comprehensive consensus on commercially viable terms for the imminent export of Jubilee and TEN gas – a negotiation slated for finality within the stated timeframe.
With an existing export throughput approximating 100 million standard cubic feet per day (mmscf/d), Tullow’s commitment to Ghana’s economic upliftment is underscored. Notably, the pricing structure remains positioned beneath the weighted average of alternative gas resources within the nation, a testament to Tullow’s concerted dedication to augmenting Ghana’s economic fabric.
Wissam Al-Monthiry, Managing Director of Tullow Oil, hailed this achievement as a triumph of collaboration, underscored by a productive alliance with the Government of Ghana and joint venture partners. Al-Monthiry’s optimism radiated as he envisioned the trajectory ahead, highlighting the transformative potency of a long-term gas sales agreement. This accord, he noted, holds the potential to galvanize forthcoming investments and anchor a sustainable wellspring of competitively priced energy, thus enriching Ghana’s energy landscape.
“This amendment highlights the positive deliberations and collaboration with the Government of Ghana and our joint venture partners. Significant progress has been made and we look forward to continuing our discussions to secure a long term gas sales agreement in Ghana, which will be an important catalyst for future investment and provide a long-term source of competitively priced energy for Ghana,” he said.
In this recalibration of agreements, Tullow’s strategic acumen takes center stage, reinforcing its commitment to Ghana’s prosperity and the cultivation of partnerships that stand to reshape the nation’s energy future.
