Tullow Oil climbs on favourable court ruling over Ghana operations

Shares in Tullow Oil climbed as much as 9% on Monday morning, after a judge ruled its TEN development could continue.

Over the weekend, the International Tribunal for the Law of the Sea rejected Ivory Coast’s demand to stop work on a Tullow-operated field, located in disputed waters off the coast of Ghana.

On Saturday, the Hamburg-based tribunal ruled Ghana should not begin any new drilling operation in the disputed waters but added that the ongoing work should continue as the opposite would risk “considerable financial loss” to the nation.

"Following this ruling, the TEN project can move ahead and we will now await instructions from the government of Ghana with regard to implementing those provisional measures that have been ordered by the International Tribunal for the Law of the Sea," the company said in a statement.

Following the ruling, analysts at Canaccord Genuity reiterated their ‘hold’ rating on the stock.

Tullow shares were up 2.41% to 428.06p at 09:24 on Monday.