Tullow Oil plc has completed the sale of its assets in Equatorial Guinea to Panoro Energy ASA (Panoro), and received US$88.8mn from the transaction
As previously disclosed, this transaction also includes contingent cash payments of up to US$16mn which are linked to asset performance and oil price. The closing of this transaction follows the satisfaction of all completed conditions, including the approval from the Government of Equatorial Guinea and Tullow and Panoro shareholders and other customary third-party approvals.
Although Tullow will continue to have a financial link to the assets in Ceiba and Okume fields, the closing of this transaction marks Tullow’s exit from its licences in Equatorial Guinea after 18 years. On receipt of funds, Tullow has net debt of around US$2.3bn and liquidity headroom of around US$1bn.
The sale of the Dussafu Asset in Gabon to Panoro is expected to complete in Q2 2021. A further US$5mn consideration is due be paid to Tullow after both transactions with Panoro have completed.
