Tullow Oil Plc and Gabon Oil Company have reached a legally binding heads of terms agreement for the sale of Tullow Oil Gabon SA, which owns all of Tullow’s business interests in Gabon, for an impressive $300 million.
This was reported in a press release by Tullow, retrieved by Energy in Africa on Monday, with the completion of the transaction and receipt of funds expected around the middle of the year.
The corporate sale encompasses Tullow’s entire Gabonese asset portfolio, which includes approximately 3.6 million barrels of 2P reserves (independently audited at year-end 2024) and roughly 10 kbopd of 2025 production guidance.
Tullow stated that they will enter into the full sale and purchase agreement (SPA), targeted for the second quarter of 2025. While the transaction takes effect on January 1, 2025, Tullow’s net debt will have decreased to $1.15 billion on a pro forma basis.
Richard Miller, Chief Financial Officer and Interim Chief Executive Officer of Tullow, commented on the acquisition:
“This value 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 finalising the full suite of documentation and driving the transaction to swift completion.”
Miller further explained that the company has strengthened its balance sheet and repaid its 2025 senior notes.
He also highlighted the imminent return to drilling at Jubilee and the ongoing production optimization activities in the first quarter of 2025.
These efforts, he emphasized, reflect the company’s commitment to delivering on its business objectives and position it strongly for the year ahead.
Prior to the transaction being completed, Tullow will handle the 2024 dividend in accordance with Gabonese regulations, obtain clearance from the CEMAC Competition Commission, and secure all required approvals, including those from government ministries.
The sale of a portfolio of non-core assets accelerates the deleveraging process and is accrete to both equity and leverage.
