- Tullow’s $307m Big Move: Gabon Exit Sets Stage for Ghana and Kenya Push
Tullow Oil plc has completed the sale of its entire portfolio of assets in Gabon to the state-owned Gabon Oil Company (GOC) for $307 million, marking a significant step in the UK-listed independent energy company’s strategy to streamline its operations and reduce debt.
The transaction, announced on 29 July 2025, sees Tullow transfer 100 per cent ownership of its subsidiary Tullow Oil Gabon S.A. to GOC. The subsidiary held all of Tullow’s non-operated working interests in Gabon, a country where the company has operated for 21 years. The sale was executed on a cash-free, debt-free basis and is net of tax and customary adjustments.
Richard Miller, Tullow’s chief financial officer and interim chief executive, described the sale as a “key milestone” in accelerating the company’s deleveraging programme. “Today’s news represents another key milestone that accelerates the deleveraging of Tullow,” Miller said in a statement. “Our immediate focus is on successfully completing the Kenya transaction in 2025 and the current Ghana drilling campaign with the first well, a Jubilee producer, now onstream.”
The proceeds from the sale, NorvanReports understands, will be used primarily to reduce Tullow’s net debt, which has been a central focus for the group following years of financial pressure linked to falling oil prices and project delays. The company said it would use part of the transaction proceeds to repay in full and simultaneously cancel its $150 million revolving credit facility (RCF), which was recently extended to 31 October 2025 with reduced commitments.
Tullow’s exit from Gabon comes at a time when the company is consolidating its portfolio around its core producing assets in Ghana. The decision also reflects a wider industry trend, with oil majors and independents alike increasingly divesting from smaller, non-core assets to shore up balance sheets and focus on higher-margin operations.
Kenya Sale in Progress
Alongside the Gabon divestment, Tullow is in the process of finalising the sale of its entire working interests in Kenya. On 21 July 2025, the company signed a sale and purchase agreement with Auron Energy E&P Ltd, an affiliate of Gulf Energy Ltd, to offload Tullow Kenya BV for a minimum cash consideration of $120 million, subject to customary adjustments.
As part of this transaction, the Kenyan government has extended the review period for the field development plan covering blocks 10BB and 13T in the South Lokichar Basin to 31 December 2025. The Kenya sale is expected to further strengthen Tullow’s financial position and allow it to allocate capital more effectively towards its flagship operations.
Focus on Ghana
Tullow, which is listed on both the London and Ghana Stock Exchanges under the symbol TLW, now intends to concentrate on its producing assets in Ghana. The company is currently advancing a major drilling campaign on the Jubilee and TEN fields, which remain the cornerstone of its future growth strategy.
The group has also underscored its commitment to sustainability, reiterating its target of achieving net-zero Scope 1 and 2 emissions by 2030. It continues to pursue a Shared Prosperity strategy designed to deliver lasting socio-economic benefits for host nations, including Ghana.
Market Response and Outlook
Industry analysts have welcomed the Gabon sale as a necessary step in Tullow’s ongoing restructuring. “The transaction strengthens Tullow’s balance sheet and gives it the flexibility to execute its core strategy in Ghana,” said one analyst with an international investment bank. “However, the Kenya transaction will also be critical to fully reset the company’s financial trajectory.”
The deal comes against the backdrop of fluctuating oil prices and increasing investor scrutiny on energy companies’ capital discipline and emissions strategies. Tullow’s streamlined portfolio and reduced debt burden are expected to improve its competitiveness as it seeks to deliver stable production from its remaining assets.
Tullow confirmed there had been no material changes to matters disclosed in its 13 May 2025 transaction announcement under the UK Listing Rules.
With its exit from Gabon now complete, all eyes will be on how swiftly Tullow can close the Kenya sale and deliver results from its ongoing drilling programme in Ghana.
