Tullow Oil Seals $300M Gabon Assets Sale To Gabon Oil Company

Tullow Oil has signed a share and purchase agreement (SPA) with Gabon Oil Company to sell its entire working interest in Gabon for a cash consideration of $300m (£252.57m).

The deal encompasses Tullow’s Gabonese portfolio, which includes forecasted oil production of 10,000 barrels per day (bpd) for 2025 and 36 million barrels of 2P (proven) reserves, audited at the end of 2024.

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Tullow Oil and Gabon Oil Company signed a binding agreement for the sale in March 2025.

The transaction is expected to be finalised by mid-2025, subject to customary adjustments, and government and regulatory approvals.

Tullow Oil CFO and interim CEO Richard Miller said: “We continue to make strong progress towards completing this strategic, value accretive divestment of our Gabon assets, with the signing of the SPA. The proceeds, expected in the coming months, will materially reduce our net debt and strengthen our balance sheet, which positions us well as we look to optimise our capital structure.

“Looking ahead, the transaction enables Tullow to continue to deliver against our business objectives to unlock value from our high-margin, self-funded assets to grow our reserve base and create value for all stakeholders.”

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In April, Tullow Oil agreed to sell its Kenyan subsidiary, Tullow Kenya, to Gulf Energy.

The deal involves a minimum consideration of $120m and was signed by its subsidiary Tullow Overseas Holdings.

In December last year, Kosmos Energy withdrew from its efforts to acquire Tullow Oil.

The company did not disclose the reason for discontinuing the potential deal, which was still in the preliminary discussion stage.