Tullow Oil plc (Tullow), Africa focused independent oil and gas firm, has signed a binding heads of terms agreement with Gabon Oil Company for the sale of its Gabonese portfolio of assets. The transaction, valued at $300 million net of tax, is expected to significantly reduce Tullow’s net debt and accelerate its deleveraging process.
The sale includes Tullow’s entire Gabonese portfolio, representing approximately 10,000 barrels of oil per day (kbopd) of 2025 production guidance and 36 million barrels of 2P reserves. The effective date for the transaction is January 1, 2025.
On a pro forma basis, the transaction will reduce Tullow’s net debt to $1.15 billion as of the effective date. The company expects to enter into a full sale and purchase agreement (SPA) in the second quarter of 2025.
Completion of the transaction is subject to various conditions, including government approvals, CEMAC Competition Commission approval, and Tullow’s processing of the 2024 dividend in compliance with Gabonese requirements. The transaction is expected to be completed around the middle of the year.
Richard Miller, Chief Financial Officer and Interim Chief Executive Officer of Tullow, commented: “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.
“Together with GOC, we are focused on finalizing the full suite of documentation and driving the transaction to swift completion.
“Our strengthened balance sheet, repayment of our 2025 senior notes, and imminent return to drilling at Jubilee, combined with production optimization activities in the first quarter of 2025, demonstrates our continued delivery against our business objectives and positions the Company strongly for the year ahead.”
Source:https://energynewsafrica.com
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