Tullow signs agreement to sell assets worth $300 million in West Africa

The Compagnie Pétrolière Nationale du Gabon (Gabon Oil Company, GOC) has signed a strategic agreement with Tullow Oil, a British oil company, to acquire all its assets in Gabon. The transaction, valued at $300 million net of tax, marks a key step in the consolidation of Gabon's oil capacities.

The agreement, finalised in the form of a Sale and Purchase Agreement (SPA), concerns the sale of Tullow Oil Gabon, Tullow Oil's wholly-owned subsidiary, which holds interests in a number of non-operated oil and gas assets in the country. This acquisition will enable GOC to boost its oil production by around 10,000 barrels a day and add 36 million barrels of proven and probable reserves to its portfolio.

Completion of the transaction, which is subject to regulatory approvals, is scheduled for mid-2025. This transaction is part of GOC's strategy to increase its control over national energy resources and optimise their exploitation.

For Tullow Oil, this disposal represents a strategic step in the restructuring of its portfolio. Richard Miller, Acting Chief Executive of Tullow, said: "We continue to make good progress towards completing this strategic and value-creating disposal of our Gabon assets. The proceeds expected in the coming months will significantly reduce our net debt and strengthen our balance sheet.

The sale will enable Tullow to deleverage significantly and reduce the risks associated with the refinancing of its debt scheduled for 2025. The UK company plans to use the funds to optimise its capital structure and focus on key assets, including the Jubilee field offshore Ghana, to increase reserves and strengthen its position in high-potential markets.

This acquisition strengthens GOC's position as a key player in Gabon's oil sector, while consolidating the country's energy sovereignty. For Tullow Oil, the deal marks a shift towards a more focused strategy, with a refocus on high value-added projects.

As Gabon continues to develop its oil industry, this transaction illustrates the dynamics of a fast-changing market in which national players are playing an increasingly prominent role.