Ashurst has advised MODEC, Inc. ("MODEC"), Mitsui & Co., Ltd ("Mitsui"), Marubeni Corporation ("Marubeni") and Mitsui O.S.K. Lines Ltd. ("MOL") on their joint participation (through project company T.E.N. Ghana MV25 B.V.) in a long-term charter of a floating production, storage, and offloading system ("FPSO") to Tullow Ghana Limited for use in the Tweneboa, Enyenra, Ntomme ("TEN") fields offshore Ghana. Ashurst's role included advising the sponsors on a US$847 million project finance facility provided by Japan Bank for International Cooperation, Sumitomo Mitsui Banking Corporation, Bank of Tokyo-Mitsubishi UFJ, Mizuho, ING Bank and ABN AMRO.
The team from Ashurst's Tokyo office was led by partners John McClenahan, Harvey Weaver and Myles Mantle, assisted by counsel Matthew Rickards, senior associate Shan Koh, and associates Glen McAskill, Luke Russell and Rebecca Ogg.
The TEN fields are held by a joint venture of five companies including Tullow Ghana Limited (a subsidiary of Tullow Oil plc) as Operator, Anadarko Petroleum Corporation, Kosmos Energy, Sabre Oil and Gas (a subsidiary of Petro SA) and Ghana National Petroleum Company. The FPSO project, which is planned to reach completion in 2016, will have an oil storage capacity of 1.7 million barrels and a gas processing capacity of 170 million cubic feet per day and will be developed through conversion of a Very Large Crude Carrier.
This is the latest in a series of FPSO projects on which Ashurst Tokyo has advised, including projects offshore Australia, Brazil, Ivory Coast, Nigeria and Vietnam. It is the firm's second such project in Ghana, having previously advised on the Jubilee FPSO (acting for MODEC and other investors).
Partner Harvey Weaver commented:
"We are delighted to have had the opportunity to represent T.E.N. Ghana MV25 and its shareholders, Mitsui, MODEC, Marubeni and MOL on another successful FPSO transaction, following on from the Cernambi Norte transaction in Brazil closed earlier this year. While Ashurst Tokyo has been active on African projects for many years, we are currently witnessing very strong growth in transactional mandates for Japanese clients investing in Africa's natural resources and infrastructure sectors. This project is a good example of the emergence of Africa as an increasingly important market for the FPSO industry in particular, as well as an illustration of the increasing value and complexity of these vessels."
