UK-based oil and gas company Tullow Oil has signed a Sale and Purchase Agreement to acquire the floating production, storage, and offloading vessel (FPSO), Professor John Evans Atta Mills, for $205 million.

The acquisition, executed by Tullow’s wholly owned subsidiary, Tullow Ghana Limited, on behalf of itself and its joint venture partners, aims to reduce fixed costs and improve long-term returns from the company’s operations in Ghana. The transaction is expected to be completed by the end of the first quarter of 2027, pending regulatory approvals and other standard conditions.

The FPSO, currently managed by MODEC under a 10-year lease, operates on the TEN fields in the Deep Water Tano Block offshore Ghana. Following the acquisition, Tullow plans to integrate operations with the adjacent Jubilee Field to maximise efficiency and generate operational synergies.

Tullow’s share of the purchase price is approximately $125.6 million, roughly equivalent to one year of its current net lease payments. The company intends to finance this through cash flow generated from the TEN fields within the year.

Other joint venture partners in Tullow Ghana Limited include the Ghana National Petroleum Corporation (GNPC), GNPC Explorco, Kosmos Energy, and PetroSA.

Tullow said the acquisition aligns with its strategy to streamline production and reduce fixed operating costs by eliminating recurring lease payments associated with the FPSO. CEO Ian Perks described the deal as a “significant step in strengthening the company’s long-term financial position.”

“This value-accretive transaction is another important milestone for Tullow, supporting our strategic priority to optimise production activities and deliver improved economics. The acquisition of the FPSO will generate material cost savings by removing annual lease costs and resetting fixed costs at the TEN fields. By extending the economic life and eliminating lease payments, we will create additional free cash flow potential beyond 2027. This transaction strengthens the foundations for future value creation,” Perks said.

Constructed by MODEC, the FPSO Prof John Evans Atta Mills achieved first oil in August 2016. It is the second MODEC-operated vessel supporting Tullow’s Ghana operations, following the F