Tullow Oil Sells Gabon Assets to Gabon Oil Company for $300 Million
Tullow Oil plc has announced the signing of a binding heads of terms agreement with Gabon Oil Company (GOC) for the sale of Tullow Oil Gabon SA, which holds the company’s entire working interests in Gabon. The deal, valued at $300 million net of tax, aligns with Tullow’s strategy to streamline its portfolio and accelerate its deleveraging process.
The transaction involves the disposal of Tullow’s non-core Gabonese assets, which include approximately 10,000 barrels of oil per day (kbopd) of 2025 production guidance and 36 million barrels of 2P reserves, independently audited as of year-end 2024. The effective date for the transaction is January 1, 2025.
According to Tullow, the sale will significantly impact its financial position, reducing its net debt to approximately $1.15 billion on a pro forma basis. The company aims to enter into a full Sale and Purchase Agreement (SPA) by the second quarter of 2025, with completion anticipated around mid-year, subject to regulatory approvals.
These include approvals from relevant government ministries, the CEMAC Competition Commission, and compliance with Gabonese regulations on dividend processing for 2024.
Commenting on the development, Richard Miller, Tullow’s Chief Financial Officer and Interim Chief Executive Officer, emphasized the strategic importance of the transaction.
“This value-accretive transaction with Gabon Oil Company aligns with our strategic priorities to materially accelerate deleveraging and is an important step as we progress our refinancing plans this year,” he said.
“Together with GOC, we are focused on finalizing the full suite of documentation and driving the transaction to swift completion.”
Miller further highlighted Tullow’s strengthened balance sheet, its commitment to repaying its 2025 senior notes, and plans to resume drilling at the Jubilee field. These efforts, combined with production optimization activities in early 2025, reinforce the company’s focus on operational and financial stability in the coming year.
Tullow Oil has indicated that further announcements will be made as the transaction progresses towards full completion.
