Tullow Oil plc has signed a cashless asset swap agreement with Perenco Oil for certain licences in Gabon on the Atlantic coast of Central Africa.
ASSETS
Tullow Gabon will transfer its existing participating interests of the Limande, Turnix, Moba, Oba and Simba assets to Perenco. Tullow will retain 40% in Simba.
Perenco will transfer certain of its existing participating interests the Kowe and DE8 assets to Tullow, resulting in post-completion holdings of 40% for Tullow Gabon.
TCHATAMBA
Tullow said that the deal simplified its equity ownership across key fields in Gabon, creating “better alignment between the participating interest partners and streamlining processes”.
The company will focus on more material positions in key fields and place the Tchatamba facilities as a core hub.
Tullow’s portfolio will also have a balance of discovered resources and appraisal and exploration assets in line with the group’s “infrastructure-led exploration” (ILX) growth strategy.
The agreement also allows Tullow to grow through its interest in the DE8 licence where several identified ILX opportunities could be tied into existing Tchatamba facilities.
Tullow’s 2023 group production guidance of 58,000 to 64,000 bopd and cash flow guidance of c.$200 million at $100/bbl remains unchanged.
The deal, expected to complete by the end of 2023 with an economic date of 1 February 2023, is classified as a Class 2 transaction and not conditional on Tullow shareholders’ approval.
OPTIMISATION
“This deal is an example of Tullow’s strategy in action as we continue to take proactive steps to optimise our portfolio to focus on high return producing assets and growth opportunities around existing infrastructure,” said chief executive Rahul Dhir.
“Our Gabon assets are a valuable and important part of our asset base, and this transaction enhances our exposure to preferred fields.
“We look forward to working closely with our partner to maximise their full potential.”