Status of Operations
Contractor is producing oil from the Jubilee and TEN Fields utilizing the FPSO Kwame Nkrumah and FPSO JEA Mills respectively. Approval has been given by the Minister of Energy for the Integration of the Jubilee Field resources with resources from Mahogany and Teak within the West Cape Three Points Contract Area (The Greater Jubilee Development). The Contractor is also evaluating that of Wawa Discovery for commercial tie-in to the TEN Project.
Royalty: Five percent (5%) of the Gross Production of Crude Oil shall be delivered to the State as Royalty.
Royalty for any Crude Oil having an API gravity of less than eighteen degrees shall be four percent (4%).
Royalty to be delivered to the State on Natural Gas shall be at the rate of three percent (3%) of the annual Gross Production of Natural Gas.
Income Tax: In accordance with the provisions of the Income Tax law, petroleum income tax shall be levied at thirty five percent (35%).
Withholding Tax: Save for withholding tax at the rate of five percent (5%) from the aggregate amount due to any Subcontractor (other than the State or any entity wholly owned or controlled by the State, where such entity is in the possession of a certification of exemption from withholding tax from the Commissioner of Internal Revenue Service, in which case withholding tax shall not be payable).
OPERATOR: Tullow Ghana Limited – 35.48% interest in block
OTHER CONTRACTING PARTIES:
Anadarko Petroleum Corporation– 24% Interest in Block
Kosmos Energy Ghana HC - 24% Interest in Block
PetroSAGhana Limited– 2.52% Interest in Block
Ghana National Petroleum Corporation (GNPC)-14% Interest in Block
Contract Area Size:
Portion of Jubilee Field: 61 sq. km
TEN Development and Production Area: 450 sq. km
Wawa Discovery Area: 106 sq.km
Effective Date: March 10, 2006
Current Phase of Operations: Development and Production
Additional Oil Entitlement: Refer to the Petroleum Agreement.