Tullow Oil has completed the sale of all its assets in Gabon to the state run Gabon Oil Company for $307 million and exited its operations in the Central African country.
The deal ends the British company’s 21 year presence in the Central African country’s upstream sector.
The transaction includes Tullow’s entire non operated working interest in its Gabon portfolio, which holds an estimated 36 million barrels of proven and probable (2P) reserves.
Expected output from the assets was around 10,000 barrels per day (bdp) for 2025, according to the company’s statement.
The firm said proceeds from the deal would help it reduce debt and strengthen its balance sheet, aligning with its plan to focus on key assets in Ghana and elsewhere.
In a statement on Tuesday, Tullow’s Interim Chief Executive Officer and Chief Financial Officer, Richard Miller, said the asset sale would improve the company’s financial stability.
“The completion of this transaction is a significant milestone in delivering our strategy. It will result in a material reduction of our net debt and marks an important step in repositioning Tullow for future growth,” he stated.
Debt repayment underway
In addition, Tullow confirmed it had received the full $307 million and would use part of the funds to repay and cancel its $150 million Revolving Credit Facility.
This is part of the company’s broader effort to manage liabilities while focusing on high margin operations in its remaining upstream portfolio.
The company also added that the exit from Gabon will allow it to allocate capital more efficiently and concentrate efforts on countries where it has operated control, including Ghana, where it produces around 100,000 bdp.
Tullow had operated in Gabon since 2003 through minority stakes in several offshore and onshore fields.
The company initially announced plans to divest its Gabonese assets in 2023, aiming to raise capital and reduce exposure to non core operations across Africa.
Gabon gains greater control
The buyer, Gabon Oil Company (GOC), is the country’s national oil company.
The acquisition is expected to increase Gabon’s control over its petroleum resources and support state revenue goals.
Gabon, which is a member of the Organisation of the Petroleum Exporting Countries (OPEC), has been pushing to localise control in its oil sector amid fluctuating global prices and declining production in mature fields.
The exit of Tullow adds to a growing list of foreign companies scaling back African portfolios. Firms such as Shell and ExxonMobil have also sold assets or reduced their exposure to African assets in recent years.
Tullow said it would now focus on delivering production, cash flow, and value from its assets in Ghana, Côte d’Ivoire and Kenya.
The company added that updates on its capital programme and operations would be shared in its upcoming earnings report.
