(Ecofin Agency) - • Tullow Oil finalizes the sale of its Gabonese assets to Gabon Oil Company for $300 million
• The move is part of a wider strategy to cut debt, which stood near $1.5 billion in late 2023
• The sale will reduce production income, but is expected to ease financial pressure

UK-based energy firm Tullow Oil announced yesterday it has completed the sale of its assets in Gabon. The company reached a $300 million agreement with Gabon Oil Company (GOC), the country’s national oil firm.

The transaction involves Tullow's entire non-operated stakes in Gabon, transferred through the sale of Tullow Oil Gabon SA. These assets hold estimated reserves of 36 million barrels, with expected production of around 10,000 barrels per day this year.

The revenue from the transaction, expected by mid-year, will be directed toward debt repayment. Tullow acknowledged that the sale is likely to reduce gross revenue and operational results.

However, the company believes the impact will be offset by a stronger financial structure, in line with the debt reduction strategy it has pursued in recent weeks.

With its move, Tullow aims to strengthen its balance sheet and refocus investment on higher-yield assets, particularly in Ghana. The goal is to cut net debt in a sustainable way, while keeping a solid asset base to fund future growth.

As a reminder, net debt approached $1.5 billion by the end of last year, weighing heavily on the company’s financial health. A planned merger with Kosmos Energy was explored but ultimately fell through.

Last month, Tullow reached a deal with UAE-based Gulf Energy to sell its oil interests in Kenya’s Lokichar Basin. The agreement, worth at least $120 million, includes a clause granting Tullow a 30% free carry in the next stages of project development.