Tullow Oil plc has secured a $400 million five-year debt facility and off-take contracts with Glencore Energy UK Ltd.
BUSINESS PLAN
The Africa-focused company will be able to draw down funds over a period of 18 months to manage its senior notes maturing in March 2025.
Tullow has also signed oil marketing and offtake contracts with Glencore for crude oil entitlements from the Jubilee and TEN fields in Ghana and the Rabi Light entitlements in Gabon which run concurrently with the debt facility.
“Glencore’s $400 million facility commitment is a strong endorsement of our business plan and strategy,” said chief executive officer Rahul Dhir.
“Today’s announcement demonstrates our ability to access long term capital from a variety of sources and this facility is a material step in our refinancing strategy, following the successful and equity accretive tender offer in June.
“The proceeds from this facility, together with cash on balance sheet and $800 million of free cash flow expected to be generated during 2023 to 2025, will allow us to fully address all outstanding 2025 notes and positions us for a successful refinancing of the 2026 notes.”