Tullow Oil completes sale of Gabon assets for $307 million
Why we think this is good
The RNS announcement indicates that Tullow Oil has successfully completed the sale of its assets in Gabon to the Gabon Oil Company for a total cash consideration of US$307 million. This transaction represents Tullow's exit from Gabon after 21 years and will be used to strengthen the company's balance sheet by materially reducing its net debt. The sale appears to be a straightforward transaction with no major caveats or regulatory issues, which is a positive development for the company's financial position.
Key Points
- Tullow completes sale of Gabon assets to Gabon Oil Company for $307 million
- Transaction represents sale of 100% of shares in Tullow Oil Gabon S.A.
- Sale proceeds will be used to strengthen Tullow's balance sheet by reducing net debt
- Marks Tullow's exit from Gabon after 21 years
Summary
Tullow Oil has successfully completed the sale of its assets in Gabon to the Gabon Oil Company for a total cash consideration of US$307 million. The transaction represents the sale of 100% of the shares in Tullow's subsidiary Tullow Oil Gabon S.A., which holds all of Tullow's non-operated working interests in Gabon. The sale proceeds will be used to strengthen Tullow's balance sheet by materially reducing its net debt. The sale marks Tullow's exit from its licences in Gabon after 21 years.