Tullow Oil plc has signed a binding heads of terms agreement to sell its non-core Gabon assets to Gabon Oil Company for £300 million in cash net of tax.
OPTIMISATION
The sale comprises non-operated assets of 10 thousand barrels of oil per day of 2025 production guidance and c.36 million barrels of 2P reserves.
Tullow expects the deal to reduce its net debt to $1.15 billion from the effective date of 1 January 2025.
The transaction is due to complete around the middle of the year, subject to approvals.
“This value accretive transaction with Gabon Oil Company (GOC) aligns with our strategic priorities to materially accelerate deleveraging and is an important step as we progress our refinancing plans this year,” said chief financial officer and interim chief executive officer Richard Miller.
“Our strengthened balance sheet, repayment of our 2025 senior notes and imminent return to drilling at Jubilee [field in Ghana], combined with production optimisation activities in the first quarter of 2025, demonstrates our continued delivery against our business objectives and positions the company strongly for the year ahead.”
In April 2023 Tullow completed a cashless asset swap for its Gabon interests with Perenco Oil and in August of the same year extended several of the licences until 2046.