Tullow Oil plc has signed a sale and purchase agreement to sell all the shares in its Gabonese subsidiary to Gabon Oil Company for US$300 million cash, net of tax.
DEBT
The move, covering all of Tullow’s non-operated working interests in Gabon, follows the binding heads of terms signed in March.
Payment is due following regulatory approvals and completion of the transaction, expected in the middle of 2025.
Tullow said that the assets include guidance of circa 10 thousand barrels of oil per day of 2025 production and circa 36 million barrels of 2P reserves.
“The proceeds, expected in the coming months, will materially reduce our net debt and strengthen our balance sheet, which positions us well as we look to optimise our capital structure,” said chief financial officer and interim chief executive Richard Miller.
“Looking ahead, the transaction enables Tullow to continue to deliver against our business objectives to unlock value from our high-margin, self-funded assets to grow our reserve base and create value for all stakeholders.”