13th May 2025 16:42
(Alliance News) - Tullow Oil PLC on Tuesday said it has signed a sale and purchase agreement to sell its Gabon assets to Gabon Oil Company for USD300 million.
The oil and gas producer in Ghana, Gabon and Ivory Coast said its wholly owned subsidiary Tullow Gabon Ltd has signed the agreement to sell Tullow Oil Gabon SA, which holds all of its non-operated working interests in Gabon.
Shares in Tullow Oil were up 14% to 15.64 pence in London on Tuesday afternoon.
Tullow said the sale represents 10,000 barrels of oil per day of 2025 production guidance and around 36 million barrels of 2P reserves.
"We continue to make strong progress towards completing this strategic, value accretive divestment of our Gabon assets, with the signing of the SPA. 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 Interim Chief Executive Officer Richard Millar.
"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."
Tullow said the completion of the transaction and the receipt of funds is expected around the middle of the year.
It said net proceeds will be used to strengthen its balance sheet by materially reducing net debt.
The transaction will reduce pro forma gross profit by USD119 million and cut pro forma pretax operating profit by USD120 million, Tullow said.
By Michael Hennessey, Alliance News reporter
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