West Africa-focused Tullow Oil’s handover of the marketing rights to its Ghanian oilfields to Glencore is not expected to have any material market impact, a trader said on Monday. Tullow on Monday signed a $400 million five-year debt deal with Glencore to help manage its senior notes maturing through 2026. The deal came alongside the Ghana marketing rights agreement. Tullow reiterated its free cashflow guidance of $800 million between this year and 2025. The marketing deal includes output from Tullow’s Jubilee and TEN oil fields offshore Ghana, whose net volumes are expected in the region of 46,000 barrels per day (bpd) this year.
This change makes no difference to the broader WAF market, a trader said. “Same cargoes, different seller.” Glencore’s cut will depend on the price of oil and how quickly and how much interest Tullow will pay on the loan, the trader added. A considerable amount of Ghanian, Gabonese and Nigerian cargoes scheduled for December-loading are still on offer, a trader said on Friday.
Source: News Worldwide