Business
Heads of terms agreed for sale of Gabon assets
Heads of terms agreed for sale of Gabon assets.
About this update from Tullow Oil Plc
[{"type":"text","content":"\n\nTullow Oil plc\n\nTullow agrees binding heads of terms for $300 million net of tax sale of Gabon assets to Gabon Oil Company\n \n24 March 2025 - Tullow Oil plc (Tullow) is pleased to announce that it has signed a binding heads of terms agreement with Gabon Oil Company for the sale of Tullow Oil Gabon SA, which holds 100% of Tullow's working interests in Gabon for cash consideration of $300 million net of tax (the \"Transaction\").\nThis disposal of a portfolio of non-core assets is accretive to both equity and leverage and accelerates the deleveraging process as referred to in our January Trading Statement and Operational Update.\nThis Transaction will constitute a significant transaction for the purposes of UKLR 7 of the UK Listing Rules (as came into effect on 29 July 2024). Further announcements will be made in due course upon full form transaction documentation being entered into by the parties.\n \nTransaction highlights\n· Total cash consideration payable of $300 million net of tax.\n· Corporate sale of Tullow's entire Gabonese portfolio of assets, representing c.10 kbopd of 2025 production guidance and c.36 million barrels of 2P reserves (independently audited at year end 2024).\n· Effective date for the Transaction is 1 January 2025.\n· On a pro forma basis the Transaction will reduce Tullow's net debt to $1.15 billion, as of the effective date.\n· Entering into the full sale and purchase agreement (SPA) is targeted for the second quarter of 2025.\n· Conditions precedent for the completion of the Transaction include all necessary approvals (including from government ministries), CEMAC Competition Commission approval and Tullow's processing of the 2024 dividend in compliance with Gabonese requirements.\n· Completion of the Transaction and receipt of funds is expected around the middle of year.\n \nRichard Miller, Chief Financial Officer and Interim Chief Executive Officer of Tullow, commented:\n\"This value accretive transaction with Gabon Oil Company (GOC) aligns with our strategic priorities to materially accelerate deleveraging and is an important step as we progress our refinancing plans this ...