Tullow Oil shares hit record high

SHARES in Tullow Oil – the second-highest valued Irish public company – hit a record high of £12.87 (€14.23) in early trading in London yesterday on the back of speculation that BP may lodge a bid for Kosmos Energy LLC’s stake in the Jubilee field in Ghana, which is operated by Tullow.

Private equity groups Blackstone and Warburg Pincus have been looking to sell Kosmos since the early part of this year and reached initial agreement with Exxon Mobil earlier this month, pending approval by Ghana’s government.

Reports yesterday suggested that BP has now entered the fray for Kosmos’ Jubilee stake and has held talks with the Ghana National Petroleum Corporation (GNPC) about a potential joint offer, with Goldman Sachs advising.

With regard to Tullow, its share price closed up 17c in Dublin at €14. While it didn’t hold its record high in London, it closed there at £12.63.

The Jubilee field is Tullow’s hottest asset – the company holds a 34.7% stake – and Ghana, as a whole, is tipped to become one of the biggest prospects for oil companies in Africa.

According to reports, the GNPC is considering proposals from a number of companies with regard to a bid for Kosmos’ assets in the country, including its interest in Jubilee.