26th Feb 2021 10:10
(Alliance News) - Tullow Oil PLC on Friday said it has agreed with banks on a new debt capacity of USD1.7 billion, down from USD1.8 billion.
The reduction reflects six months of production since the September 2020 redetermination and the sale of Equatorial Guinea and Dussafu assets to Panoro Energy.
Based on the new debt limit, Tullow said it will have liquidity headroom of free cash and available debt facilities of USD900 million.
The company said its next reserves-based lending facility redetermination is in September.
Tullow, which operates across Africa and South America, said its recent sale of Uganda assets to Panoro Energy will enable rationalisation of its exploration portfolio, as well as material cost savings, which is expected to deliver in excess of USD1 billion of savings over the next two years.
"This, along with strong operational performance in Ghana and higher commodity prices, is providing positive impetus to constructive discussions with creditors with regards to Tullow's debt refinancing options," the company said in its statement Friday.
Tullow shares were trading 4.8% higher in London on Friday at 45.99 pence each.
By Evelina Grecenko; [email protected]
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