Tullow Oil to sell Gabon assets for $300 million

LONDON - Tullow Oil (LON:TLW) plc has reached a binding agreement to sell its entire Gabonese portfolio to Gabon Oil Company for a net cash consideration of $300 million. The deal, announced today, involves the sale of Tullow Oil Gabon SA, which includes the company’s working interests in Gabon, amounting to approximately 10 thousand barrels of oil per day of 2025 production guidance and about 36 million barrels of 2P reserves.

The effective date of the transaction is January 1, 2025, with the full sale and purchase agreement expected to be finalized in the second quarter of 2025. The completion of the sale, which is subject to necessary approvals, including government and CEMAC Competition Commission consent, as well as compliance with Gabonese requirements for Tullow’s 2024 dividend, is anticipated around mid-year.

This strategic move is part of Tullow’s efforts to accelerate deleveraging, as referenced in their January Trading Statement and Operational Update. Post-transaction, Tullow’s net debt is projected to be reduced to $1.15 billion as of the transaction’s effective date.

Richard Miller, Tullow’s Chief Financial Officer and Interim Chief Executive Officer, expressed that the transaction is in line with the company’s strategic priorities to significantly speed up deleveraging. He emphasized the company’s focus on finalizing the documentation and completing the transaction promptly. Miller also highlighted Tullow’s improved financial position, the repayment of its 2025 senior notes, and the resumption of drilling at the Jubilee field as signs of the company’s commitment to achieving its business goals and strengthening its stance for the upcoming year.

The sale represents a considerable transaction under UK Listing Rules and will be subject to further announcements as the parties enter into full transaction documentation.

The information in this article is based on a press release statement from Tullow Oil plc.

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