Tullow Oil PLC (LSE:TLW) has agreed to acquire the FPSO (floating production, storage and offloading vessel) used at Ghana’s TEN fields for $205 million, a move it says will remove annual lease costs and lower fixed spending as it looks to extend the economic life of both TEN and the adjacent Jubilee hub.
The company said its subsidiary Tullow Ghana Limited, acting for the TEN joint venture, has signed a sale and purchase agreement with T.E.N. to buy the FPSO.
Tullow’s share of the cost is around $125.6 million, with payment due on completion at the end of the first quarter of 2027, subject to conditions precedent and regulatory approvals.
Tullow said it expects its net consideration, equivalent to roughly one year of current net lease cost, to be funded by in-year cash flow from the TEN assets.
In a separate trading statement ahead of full-year results, Tullow said 2025 working interest production averaged about 40.4 kboepd, with overall FPSO uptime at Jubilee and TEN averaging 97%.
Free cash flow for the year was around $100 million, which the company said was weighed down by the late-2025 commodity price backdrop and delayed receipts, including Kenya disposal proceeds and payments due from the Government of Ghana.
Chief executive Ian Perks described 2025 as "a year of disciplined execution".
"We have achieved significant cost reductions and completed the sale of non-core assets in our ongoing efforts to streamline our portfolio and strengthen our financial position," Perks said.
"However, our 2025 full-year free cash flow was negatively impacted by the commodity price environment towards the end of the year and delays in receipt of Government of Ghana receivables and the second instalment of proceeds from the Kenya disposal."
Looking into 2026, Tullow guided for working interest production of 34–42 kboepd and forecast capital expenditure of about $200 million.
The J74-P Jubilee well came onstream on 6 January 2026 with initial gross production of around 13 kbopd, while the J75-P well is expected to come onstream around the end of the first quarter of 2026.