Tullow Oil plc has signed a binding agreement with Gabon Oil Company to sell its subsidiary, Tullow Oil Gabon SA, which holds 100% of its working interests in the country. The sale, valued at $300 million net of tax, is expected to be finalized in the second quarter of 2025.
The sale comes as Tullow faces financial pressures, with $492 million due to bondholders by March 2025 and nearly $1.4 billion by May 2026. The transaction is part of the company’s broader plan to streamline operations and reduce debt.
“This disposal of non-core assets enhances our financial position and accelerates our debt reduction process,” Tullow stated.
The agreement marks a setback for Perenco, another bidder interested in acquiring Tullow’s stakes in several Gabonese oil blocks, both offshore and onshore.
Key details of the transaction include:
- Total consideration: $300 million (net of tax)
- Assets sold: Entire Gabonese portfolio, representing approximately 10,000 barrels of oil per day (BOPD) in 2025 production and 36 million barrels of 2P reserves.
- Effective date: January 1, 2025
- Debt impact: Expected to reduce Tullow’s net debt to $1.15 billion.
- Regulatory approvals: Subject to government clearance, CEMAC Competition Commission approval, and compliance with Gabonese dividend regulations.
Completion is anticipated by mid-2025, marking a strategic shift for Tullow, which will now focus on its core assets in Ghana and Côte d’Ivoire.
Source: africaoilgasreport.com
