Tullow Oil, has signed a deal to sell all its oil assets in Gabon to the country’s national oil company, Gabon Oil Company, for $300 million. This was revealed in an official statement released by Tullow on Tuesday, May 13, 2025.
The deal involves selling 100% of Tullow Oil Gabon S.A. (TOGSA), a subsidiary that holds all of the company’s oil operations in Gabon. These assets produce about 10,000 barrels of oil each day and hold an estimated 36 million barrels of oil reserves.
According to Tullow, the money from the sale will be used to pay off debt and improve the company’s financial strength. The company hopes to complete the deal by mid-2025, once it gets all the needed approvals from the government and regulators.
“This is a big step forward in strengthening our balance sheet,” said Richard Miller, Tullow’s Interim CEO and CFO. “The proceeds from this deal will help us reduce our debt and give us more flexibility for future growth.”
Why This Deal Matters
Tullow says the decision to sell is part of a bigger plan to focus on oil projects that generate more profit and where the company has greater control. By offloading smaller, non-operated projects like those in Gabon, Tullow hopes to focus on larger, deepwater oil fields in West Africa where it plays a leading role.
The sale will result in a drop in income from the Gabon assets, about $119 million in annual profit, but Tullow believes the long-term benefits of a stronger balance sheet and a more focused portfolio are worth it.
No Shareholder Vote Needed
Even though the sale is considered significant under UK stock market rules, Tullow doesn’t need to ask shareholders for approval. The company’s advisers on the deal include Peel Hunt LLP and Norton Rose Fulbright LLP.
What’s Next?
If the deal goes through as planned, the company’s half-year financial results will reflect the sale by listing the Gabon assets as discontinued operations. This is standard practice in accounting when a company is selling off part of its business.
Tullow’s leadership believes this move will set the stage for the company’s next chapter: lower debt, better cash flow, and growth through bigger and more profitable oil projects.
