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Tullow Oil sells Gabon assets to $300 million

Tullow Oil sells Gabon assets to $300 million

Tullow Oil, a London-listed company, announced on Monday that it had signed an agreement to sell all of its working interests in Gabon to Gabon Oil Company for $300 million cash. The London-listed firm is looking to reduce its debt load.

West-African focused exploration company has struggled with setbacks in operations, poor exploration results, changes of leadership and shifting investor attention to energy transition.

Kosmos Energy, a U.S.-based oil and gas company, explored acquiring Tullow Oil in its entirety back in December. However, it abandoned the pursuit a few days later, without giving a reason.

Tullow Oil said that the sale of its Gabon assets, which represents about 10,000 barrels per day of production forecast for 2025, will reduce net debt by $1.15 billion.

As reported by the company on January 30, its net debt was approximately $1.45 billion.

The transaction is expected to be completed around 2025. (Reporting by Aatrayee Chatterjee in Bengaluru; Editing by Shilpi Majumdar)

(source: Reuters)