US oil and gas player Kosmos Energy has confirmed that it is in preliminary discussions to take over the UK-based independent exploration firm Tullow Oil.
Both companies issued statements which confirmed the discussions after media reports speculated on the possibility of the deal happening.
Kosmos said in its statement that no official offer has been made but that it has until 5 pm UK time on January 9, 2025, to make a firm offer.
“There can be no certainty that any offer will be made, nor as to the terms on which any offer might be made,” the companies said.
If successful, the merger would create a company with a production capacity of more than 130,000 barrels of oil equivalent per day, according to their 2024 guidance.
Kosmos has production operations and exploration opportunities offshore Ghana, Equatorial Guinea, and in the deepwater U.S. Gulf of Mexico. In Mauritania and Senegal, it holds a stake in the Greater Tortue Ahmeyim offshore LNG project. Production in the third quarter was around 65,400 boepd.
Tullow Oil has exploration licenses and operates projects in the Ivory Coast, Gabon, Ghana, Kenya, Mauritania, the UK, and Argentina. Its most prominent projects are the Jubilee and TEN fields in Ghana where Kosmos is one of the stakeholders. In the first half of the year, the company produced 63,700 boepd.
