Tullow farm-out targets this year

Tullow Oil has said there is a good chance it may complete the planned farm-out of part of its stake in the highly-rated Ten oil project in Africa this year, although it reiterated that it is in “no rush” to do so.

The Irish-founded exploration company currently holds a 47.5% interest in the Tweneboa Enyenra Ntomme project, which is valued at an estimated $5bn and located off the coast of Ghana. Tullow is open to decreasing its holding to as low as 30% (although it may not drop that low) if an exceptional offer is received, but is in no immediate rush to do so, given that first oil from Ten is not anticipated until the summer of 2016.

However, speaking yesterday, Tullow’s CEO, Aidan Heavey said that while value is only likely to increase, a farm-out deal could be done this year given the number of different bids already received — all of which are currently being examined by Tullow. All proceeds from the stake sale — some estimates suggesting that could be as high as $600m — will go into funding Ten’s ongoing development, with Tullow remaining as project operator.