Tullow Oil's hopes rise after Ghana offshore field dispute resolved

Courtney Goldsmith
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Tullow will be able to restart the development of its Ten fields (Source: Getty)

Shares in Tullow Oil gushed today following an international ruling that will allow the London-listed company to resume new drilling on a $5bn (£3.7bn) project in west Africa.

The International Tribunal for the Law of the Sea on Saturday ruled that the company's Ten field sits entirely within Ghanaian waters.

Tullow was blocked from exploring its Ten development off the coast of Ghana two years ago following a maritime boundary dispute between Ghana and the Ivory Coast.

Tullow's share price rose 6.23 per cent to 189.4p. The company owns 47.18 per cent of the field and is the operator.

Shares in Kosmos Energy, which owns 17 per cent, lifted 1.3 per cent to 586p.

Read more: Tullow to book a $600m impairment as low oil prices haunt the sector

The ruling made in Hamburg this weekend does not allow the Ivory Coast to appeal the decision.

“Tullow looks forward to continuing to work constructively with the governments of both Ghana and Côte d’Ivoire following the conclusion of this process. While the Ten fields have performed well during the period of the drilling moratorium, we can now restart work on the additional drilling planned as part of the Ten fields’ plan of development and take the fields towards their full potential," said Paul McDade, chief executive of Tullow.

Tullow expects to increase output from around 50,000 barrels per day (bpd) to 80,000 bpd by the end of next year.

Read more: Tullow Oil swings to a loss in the first half as weak oil prices bite

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