Tullow Oil will sell its Gabon assets to Gabon Oil Company for USD 300 million net of tax, the company said on Monday.
The sale involves Tullow’s entire Gabonese portfolio, representing around 10,000 bopd of 2025 production guidance and approximately 36 million barrels of 2P reserves. The effective date for the transaction is January 1, 2025.
“This value accretive transaction with Gabon Oil Company aligns with our strategic priorities to materially accelerate deleveraging and is an important step as we progress our refinancing plans this year,” chief financial officer and interim CEO Richard Miller said.
“Together with GOC, we are focussed on finalising the full suite of documentation and driving the transaction to swift completion,” Miller said.
Tullow stated that the transaction would reduce its net debt to USD 1.15 billion on a pro forma basis as of the effective date.
Conditions precedent for completion include all necessary approvals, including from government ministries, the CEMAC Competition Commission and Tullow’s processing of the 2024 dividend in compliance with Gabonese requirements. Completion and receipt of funds are expected around the middle of the year.
“Our strengthened balance sheet, repayment of our 2025 senior notes and imminent return to drilling at Jubilee, 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,” Miller said.
Tullow is an E&P player with interests in Côte d’Ivoire, Gabon, Ghana, Kenya and Mauritania.
It is also conducting exploration in Argentina, saying it aims to replicate the exploration success it has enjoyed in Africa in South America.
Source: theenergyyear.com