Tullow Oil plc, a UK-based independent oil and gas company focused on Africa, has agreed to sell its subsidiary, Tullow Gabon Limited, to the Gabon Oil Company for $300 million.
The transaction includes Tullow’s entire portfolio in Gabon, accounting for about 10,000 barrels of oil per day in projected 2025 output and roughly 36 million barrels of 2P (proven and probable) reserves.
According to Tullow, the deal is pending regulatory and governmental approvals, with the transaction expected to close by mid-2025.
The cash proceeds, net of tax and subject to customary adjustments, will significantly reduce Tullow’s debt burden and improve its financial position.
Tullow’s Chief Financial Officer and Interim CEO, Richard Miller, described the sale as a strategic move that aligns with the company’s focus on value-driven divestments.
This acquisition enhances Gabon Oil Company’s control over domestic oil resources, reinforcing the state’s influence in the national energy sector.
The deal also reflects broader trends of African nations reclaiming greater ownership and oversight of natural resource assets from foreign operators.
Tullow’s exit from Gabon is part of its long-term strategy to streamline operations and focus on higher-margin assets elsewhere in Africa.
Once finalized, the sale will mark a major reshuffling in Gabon’s upstream oil sector, with implications for national production and state revenue.
Both companies anticipate a smooth transition, subject to compliance with legal, financial, and regulatory conditions.