(Reuters) – Tullow Oil has signed an agreement with Gabon Oil Company to sell its entire working interests in Gabon for $300 million in cash, the London-listed company said on Monday, as it looks to reduce its debt burden.
The West-Africa focused exploration company, which once hit a market capitalization of nearly $22 billion following major discoveries such as the Jubilee field offshore in Ghana, has been grappling with operational setbacks, weak exploration results, leadership changes and shifting investor focus towards energy transition.
In December, U.S. oil and gas company Kosmos Energy explored an all-share acquisition of Tullow Oil, but walked away from its pursuit days later without providing a reason.
The sale of Tullow Oil’s Gabon assets — which represent about 10 thousand barrels of oil per day of 2025 production forecast — will reduce the company’s net debt to $1.15 billion on a pro forma basis, it said.
The company’s net debt stood at about $1.45 billion as reported on January 30.
The deal is expected to close around the middle of 2025.
(Reporting by Aatrayee Chatterjee in Bengaluru; Editing by Shilpi Majumdar)
