Tullow Oil, a West African-focused independent energy company, has signed a binding agreement to sell its Gabon assets to Gabon Oil Company for $300 million after tax.
Previously, Gabon played a central role in Tullow’s production and infrastructure-led exploration (ILX) strategy, especially after a 2023 cashless asset swap strengthened its position in key fields, making Tchatamba a core operational hub.
That same year, the Gabonese government extended multiple licenses until 2046, signaling long-term potential for the fields and facilities. Despite these developments, Tullow has decided to divest its subsidiary in Gabon, which holds its entire working interest in the country, in exchange for cash.
Richard Miller, Tullow’s CFO and Interim CEO, highlighted that the transaction aligns with the company’s strategic goals by accelerating debt reduction and advancing refinancing efforts. He emphasized that both Tullow and GOC are working to finalize documentation and complete the transaction swiftly.
Miller further stated that Tullow’s financial position is strengthening, citing the repayment of its 2025 senior notes, the imminent return to drilling at Jubilee, and ongoing production optimization efforts. These steps reinforce the company’s business objectives and position it for a strong year ahead.
By offloading non-core assets, Tullow aims to improve equity and leverage, fast-tracking debt reduction. The sale includes the company’s entire Gabonese portfolio, which contributes approximately 10,000 barrels per day to its 2025 production outlook and holds around 36 million barrels of 2P reserves verified at year-end 2024.
The transaction is set to take effect on January 1, 2025. Once completed, Tullow’s net debt will drop to an estimated $1.15 billion on a pro forma basis. The company expects to finalize the sale and purchase agreement (SPA) in Q2 2025.
Before closing the deal, Tullow must secure approvals from government ministries, the CEMAC Competition Commission, and other regulatory bodies while ensuring compliance with Gabonese dividend requirements. The company anticipates completing the sale and receiving funds by mid-2025.
Following this divestment, Tullow will concentrate on its core producing assets in Ghana and Côte d’Ivoire, as well as its discovered resource base in Kenya. The company remains committed to achieving net-zero Scope 1 and 2 emissions by 2030.
In a separate move, Tullow partnered with Opsealog last month to digitalize its marine operations in Ghana. Additionally, in December 2024, the company selected the Noble Venturer drillship for a $171 million drilling campaign, set to begin in May 2025 with six firm wells offshore Ghana.
Source: offshore-energy.biz
African Energy Council