Offshore staff
LONDON — Tullow Oil Plc has agreed to sell its total interest in Tullow Guyana BV (TGBV), which includes the Orinduik license (Tullow, 60% operated equity) in Guyana to Eco Guyana Oil and Gas (Barbados) Ltd. in exchange for a combination of upfront cash and contingent consideration.
Tullow said its decision to exit the Orinduik license is in line with its strategy to focus on its high return production assets in Africa and infrastructure-led exploration around producing hubs and delivers its objective to unlock value in emerging basins.
In 2019, Tullow drilled two exploration wells on the Orinduik license, which yielded uncommercial oil discoveries. Nonetheless, Tullow said it recognizes the material oil resource potential remaining in the Orinduik license and as such, the terms of the transaction allow Tullow to retain exposure to any potential future success in the region.
The transaction entails a $700,000 cash payment upon transfer of TGBV’s 60% equity and operatorship of the Orinduik license to Eco, to be paid to Tullow Overseas Holdings B.V. upon completion of the transaction. Transaction and payment of the initial consideration is subject to certain market-standard conditions precedent, including government and joint venture approvals.
The transaction is expected to close in the second half of 2023.
Offshore Gabon
Tullow also gained approval from the government of Gabon this week for the extension of several of its Gabon licenses to 2046.
The license extensions increase the value of Tullow’s resource base through the addition of 5 MMbbl net 2P reserves that will deliver 100% 2P reserves replacement in Gabon this year, according to the company.
Tullow stated, "This activity is in line with the group’s strategy to focus on its high return production assets in Africa and unlock value through optimisation of its non-operated portfolio. The extensions reflect the future potential of the reserves and resources across the Gabonese assets and the longevity of the [offshore] Tchatamba facilities as a core hub for Tullow."
Earlier this year, Tullow Oil Gabon signed an asset swap agreement with Perenco Oil and Gas Gabon covering numerous offshore and onshore fields in various licenses. The arrangement, Tullow said, should allow it to optimize its equity ownership in certain fields, including the offshore Tchatamba cluster, which it plans to develop as a core production hub.
08.10.2023
