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Tullow secures $2 bln loans to fund Ghana finds

UK-based oil explorer Tullow Oil said it had secured a $2 billion loans package that will finance the development of its large oil finds offshore Ghana, as it announced another find in the West African country.

Tullow said in a statement that it would pay an interest rate of up to 3.75% over US$ LIBOR on its debt facility. Before the credit crisis, the company paid around 1% above LIBOR, executives said at the time.

Investors had been waiting eagerly for confirmation the debt had been secured. Many small and medium-sized oil producers have had difficulties securing debt to fund field developments and some have been forced to put assets up for sale to meet cash needs.

Tullow added that it and partners Anadarko Petroleum and Kosmos Energy had made another significant oil discovery offshore Ghana with their Tweneboa-1 well.

The find is the latest in a string of large discoveries for the partners offshore Ghana. (Reuters)