Tullow Oil, an independent energy company with operations in West Africa, has finalized the sale of its assets in Gabon to the Gabon Oil Company (GOC), the country’s national oil company.
Since all conditions precedent under the sale and purchase agreement (SPA) have been satisfied, the sale of Tullow Oil Gabon, Tullow’s affiliate holding 100% of its non-operated interests in Gabon, has been completed. This signals the end of the oil and gas player’s operations in the African country after 21 years.
According to Tullow, the total cash consideration amounted to $307 million net of tax and customary adjustments. The company expects this to strengthen its balance sheet by materially reducing its net debt.
Richard Miller , Chief Financial Officer (CFO) and Interim Chief Executive Officer of Tullow, stated: “Today’s news represents another key milestone that accelerates the deleveraging of Tullow. I am pleased with the momentum we have at Tullow, and I look forward to this continuing in the weeks and months ahead.
“ 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.”
Based on Tullow’s website, the offshore portion of its Gabon operations encompassed a 7.5% interest in the Etame Marin Complex , and 40% interests in the Tchatamba facilities, DE8 license, and the Simba field.
When the deal with GOC was announced in March , it was disclosed that the sale represents around 10,000 barrels of oil per day (bopd) of 2025 production guidance and about 36 million barrels of 2P reserves independently audited at year-end 2024.
Elsewhere in Africa, Tullow and its partners in the West Cape Three Points (WCTP) and Deep Water Tano (DWT) licenses that cover the Jubilee and TEN fields offshore Ghana recently got an extension enabling the fields to remain in production until 2040.