Tullow Oil has signed two separate sale and purchase agreements with London-based explorer Panoro Energy for all of its assets in Equatorial Guinea and the Dussafu asset in Gabon for a total of $180 million (€149m).
The deals consist of up to $105 million for the Equatorial Guinea transaction, up to $70 million for the Dussafu transaction, and a further $5 million consideration to be paid after both transactions have completed.
Both transactions are expected to be completed in the first half of 2021.
Tullow Oil chief executive Rahul Dhir said the transactions were "important, value accretive deals for Tullow" that would have a positive impact "on our financial position as we look to further reduce our net debt and continue constructive discussions with our creditors".
“These transactions are also in line with our strategy of investing our capital on cash-generative, high-return investment opportunities in our core portfolio,” he said.
“Our Equatorial Guinea assets have formed an important and stable part of our non-operated West Africa producing portfolio since 2003.
“We will be exiting Equatorial Guinea after many years of successful investment and co-operation, and we thank the government of Equatorial Guinea for their continued support.
“Gabon remains a core country of operations for Tullow, and we will continue to invest in our assets and seek new opportunities.”
