Tullow Oil, UK, to sell Kenyan assets for at least $120 Million
Tullow Oil, a West Africa-focused oil & gas explorer, said Tuesday that it will sell its assets in Kenya for at least $120 millions to Gulf Energy Ltd as it seeks to reduce its debt.
Tullow said it would receive three payments of $40 million, as well as royalty payments. It also stated that Tullow had the right to a 30% share in future development phases, at no charge.
It has not yet been possible to fully produce the oilfields in Kenya, as building a pipeline heated for hundreds of miles would be required. Last year, the company recorded a $145-million write-off for these operations.
The UK-listed company acquired the Lokichar Oilfield in May 2023 after its license partners TotalEnergies, Africa Oil Corp and the Indian state-run companies failed to reach a sale agreement.
Tullow has agreed to sell all of its Gabon working interests for $300 million.
At the end of 2016, it had a net debt of about $1.5 billion. As of Tuesday, the company's market capitalisation was around $255million. Reporting by Shashwat awasthi from Bengaluru, and Shadia Nasralla from London. Editing by Mrigank dhaniwala and Savio d'Souza.
(source: Reuters)
