Tullow agrees US$180mn sale of assets in West Africa to Panoro

Tullow Oil storyTullow Oil plc has signed two separate sale and purchase agreements with Panoro Energy ASA (Panoro) for all of Tullow’s assets in Equatorial Guinea (the EG Transaction) and the Dussafu asset in Gabon (the Dussafu Transaction)

The transaction highlights include 

• US$180mn asset sales consisting of up to US$105mn for the EG Transaction, up to US$70mn for the Dussafu Transaction and a further US$5mn consideration to be paid after both transactions have completed.

• EG Transaction: US$89mn upfront cash consideration subject to customary completion adjustments; contingent cash payments of up to US$16mn linked to asset performance and oil price.

• Dussafu Transaction: US$46mn upfront cash consideration subject to customary completion adjustments; contingent cash payments of up to US$24mn linked to asset performance and oil price.

• Sale of approximately 6,000 bopd of 2021 production and approximately 20 mmbbl of 2P reserves, with an effective date of 1 July 2020.

• Government of Equatorial Guinea has approved the EG Transaction and confirmed that no tax arises on the disposal.

• Completion of both transactions and receipt of funds is expected in the first half of 2021.

Rahul Dhir, CEO, Tullow Oil plc, commented, “These transactions are also in line with our strategy of investing our capital on cash-generative, high return investment opportunities in our core portfolio.

“Our Equatorial Guinea assets have formed an important and stable part of our non-operated West Africa producing portfolio since 2004. We will be exiting Equatorial Guinea after many years of successful investment and co-operation and we thank the Government of Equatorial Guinea for their continued support. Gabon remains a core country of operations for Tullow and we will continue to invest in our assets and seek new opportunities.”

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