27th Apr 2015 10:10
LONDON (Alliance News) - Tullow Oil PLC Monday said its flagship TEN project can continue to be developed, despite an international tribunal ordering all exploration for oil and gas in a disputed offshore area between Ghana and the Ivory Coast, where the project is located, to be suspended.
In March, the FTSE 250-listed company warned that its main project could be impacted or delayed by a maritime boundary dispute between the two countries, after Ghana launched an arbitration in 2014 to try and resolve the border dispute, which was followed by the Ivory Coast requesting provisional measures be put in place until a final decision was made.
On Monday, Tullow said all exploration and new exploitation in the disputed area has now been suspended by the Special Chamber of the International Tribunal of the Law of the Sea in Hamburg, Germany, but said existing developments, such as the TEN project, can continue to be developed.
All new exploration and exploitation will remain suspended until the International Tribunal makes a final decision on the maritime boundary dispute between the two countries in late 2017.
According to the Financial Times, the International Tribunal backed Ghana?s right to continue operations on developments in the so-called Ten fields but ruled that any further work in the area would hurt Ivory Coast?s interests ahead of a final judgement on where the maritime border lies.
Currently, the TEN project is about 55% complete with all 10 of the project's wells expected to be brought online when the project begins production. The project is on budget and on schedule to begin production in the middle of 2016.
"Tullow is not a party to this arbitration process and will now await a decision by the government of Ghana on how it will implement the provisional measures order," it said in a statement. "The Jubilee Field is completely unaffected by this arbitration."
Still, Tullow shares were down 1% at 413.65 pence per share on Monday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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