Business News of Monday, 14 June 2021
Tullow Oil plc (Tullow) has announced the completion of the sale of its Dussafu Marin permit asset in Gabon to Panoro Energy ASA (Panoro).
Tullow on Wednesday, 9 June 2021 received a payment of $39 million from Panoro for the Dussafu asset and $5 million of contingent consideration relating to the Equatorial Guinea transaction.
The transaction also included contingent cash payments of up to $24 million which are linked to asset performance and oil price.
The closing of the transaction according to the company follows the satisfaction of all completion conditions, including the approval from the Government of Gabon and Panoro shareholders and other customary third-party approvals.
Tullow said it continues to have a substantial non-operated position in Gabon and is currently planning its future investment in its Gabonese portfolio.
Rahul Dhir, Chief Executive Officer, Tullow Oil plc, commented that: “The completion of this transaction is the final step of our asset sale programme in Uganda, Equatorial Guinea, and Gabon. These sales have provided over $700 million in liquidity and have helped both lower our cost base and support our comprehensive refinancing. With no significant debt maturities until 2025, Tullow has the financial stability to deliver on its business plan.”