Tullow Oil has signed a purchase agreement to acquire the FPSO Prof. John Evans Atta Mills, which handles production at the TEN fields off the coast of Ghana. Announced on 19 or 20 February 2026, this strategic transaction marks a major turning point for the British operator in the management of its offshore assets in West Africa.
Tullow Ghana Limited (TGL), a wholly owned subsidiary of Tullow Oil and operator of the Deep Water Tano block, has entered into a Sale and Purchase Agreement with T.E.N. Ghana MV25 BV. The acquisition relates to the FPSO Prof. John Evans Atta Mills, which has served as a floating production, storage and offloading platform for the TEN fields since they came on stream in 2016. The gross transaction value is US$205 million, of which approximately US$125.6 million is net to Tullow, corresponding to its proportional share of approximately 61.2% in the joint venture.
This transaction is part of a five-party partnership: Tullow Oil as operator, Ghana National Petroleum Corporation (GNPC) and its subsidiary GNPC Explorco, Kosmos Energy and PetroSA. Costs are allocated according to each partner's respective interests, with the other consortium members collectively covering the balance of $79.4 million. The acquisition is being financed entirely from cash flow generated by the TEN field, without additional debt or equity dilution.
The main objective of this acquisition is economic and operational optimisation. By moving from a lease model to full ownership of the infrastructure, Tullow and its partners are eliminating annual lease payments, which are often indexed to production revenues, in favour of a more predictable and tax-efficient depreciation schedule. This transition also reduces fixed operating costs, improves free cash flow generation and increases control over maintenance, upgrades and production optimisation decisions. Tullow also anticipates significant synergies with the adjacent Jubilee field, particularly in logistics, supplier management and drilling programmes, which should help to reduce unit costs and extend the profitability of both assets.
This announcement comes at a favourable time for Tullow in Ghana. The Ghanaian government recently ratified the extension of the petroleum agreements for the Jubilee and TEN fields until 2040, offering 14 additional years of operation beyond the initial expiry date of 2026. This regulatory certainty strengthens the economic viability of the investment, allowing the $205 million to be amortised over a longer period while supporting reservoir optimisation and enhanced recovery initiatives.
The transaction is expected to close in the first quarter of 2027, subject to customary regulatory approvals and standard conditions precedent. Tullow Oil presents this transaction as a key step in its strategy to focus on its mature Ghanaian assets, aiming to maximise long-term value in a volatile oil price environment and consolidate its position as a responsible and efficient operator in West Africa.