Tullow Oil unveils plans for Ghana listing

LONDON: Anglo-Irish energy explorer Tullow Oil on Tuesday announced plans for a secondary stock market listing and large share offering in Ghana, underlining its commitment to the West African nation.

"Tullow Oil plc today announces its plans for a secondary listing of its shares on the Ghana Stock Exchange (GSE) and an offering of 4,000,000 Tullow shares in Ghana," the group said in an official statement.

"The offer of Tullow shares on the GSE will give everyone in Ghana the opportunity to apply for shares in Tullow and to share in the future performance of Tullow's operations across its global portfolio of assets.

"This listing and share offer further demonstrates Tullow's long-term commitment to Ghana."

The firm, which is already listed in Dublin and London, added that the share price for the offer will be announced on June 13. Shares can then be applied for between June 13 and July 4.

"Tullow is fortunate to have played a pivotal role in delivering first oil from the word-class Jubilee field, offshore Ghana," added Chief Executive Aidan Heavey in the statement.

"We would like everyone in Ghana to have the opportunity to invest in the future performance of Tullow, especially as we embark upon further exciting exploration and development activities in Ghana and across our global portfolio.

"With the support of the Ghana Stock Exchange, the Securities and Exchange Commission and Ghanaian advisers and banks, we are making our shares accessible to anyone in Ghana who wishes to take part in the share offer."

The Jubilee field, discovered in 2007 and one of the biggest finds in west Africa of the last decade, is believed to hold more than one billion barrels of reserves.

Gross production, which began late last year, stands at more than 70,000 barrels of oil per day (bopd) and is expected to reach 120,000 bopd in July.

"The secondary listing and issue through Ghanaian institutions will help cement the group's local relationships," added analyst Job Langbroek at Davy Stockbrokers.

"Ultimately, anything that helps to reduce political risk in local operations is beneficial to shareholders."

Copyright AFP (Agence France-Presse), 2011