Skip to Content
Global News Select

Tullow Oil Enters $400 Million Debt Facility, Offtake Deal with Glencore Unit

By Christian Moess Laursen

 

Tullow Oil said it has agreed to a $400-million five-year debt facility and an oil marketing and offtake deal with the subsidiary with Glencore's U.K. oil and gas division.

The Africa-focused oil producer said Monday that proceeds from the facility, together with its cash on balance sheet and $800 million of free cash flow expected during 2023-25, will allow it to address all outstanding 2025 loan notes, including senior notes maturing in March 2025.

"Glencore's $400 million facility commitment is a strong endorsement of our business plan and strategy," Chief Executive Rahul Dhir said.

The company also said it has entered into oil marketing and offtake contracts with Glencore for its crude oil entitlements from the Jubilee and TEN fields in Ghana, as well as from the Rabi Light entitlements in Gabon. The agreement will run concurrently with the notes facility agreement, it said.

 

Write to Christian Moess Laursen at christian.moess@wsj.com

 

(END) Dow Jones Newswires

November 13, 2023 02:45 ET (07:45 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.

Market Updates

Sponsor Center