Tullow Oil plc (Tullow) is pleased to announce that it has signed two separate sale and purchase agreements with Panoro Energy ASA (Panoro) for all of Tullow’s assets in Equatorial Guinea (the EG Transaction) and the Dussafu asset in Gabon (the Dussafu Transaction).

Transaction Highlights

 - US$180 million asset sales consisting of up to US$105 million for the EG Transaction, up to US$70 million for the Dussafu Transaction and a further US$5 million consideration to be paid after both transactions have completed.
  . EG Transaction: US$89 million upfront cash consideration subject to customary completion adjustments; contingent cash payments of up to US$16 million linked to asset performance and oil price.
  . Dussafu Transaction: US$46 million upfront cash consideration subject to customary completion adjustments; contingent cash payments of up to US$24 million linked to asset performance and oil price.
 - Sale of c. 6,000 bopd of 2021 production and c. 20 million barrels of 2P reserves, with an effective date of 1 July 2020.
 - Government of Equatorial Guinea has approved the EG Transaction and confirmed that no tax arises on the disposal.
 - Completion of both transactions and receipt of funds is expected in the first half of 2021.

Rahul Dhir, Chief Executive Officer, Tullow Oil plc, commented:

"These are important, value accretive deals for Tullow that will have a positive effect on our financial position as we look to further reduce our net debt and continue constructive discussions with our creditors. These transactions are also in line with our strategy of investing our capital on cash-generative, high return investment opportunities in our core portfolio.

“Our Equatorial Guinea assets have formed an important and stable part of our non-operated West Africa producing portfolio since 2004. We will be exiting Equatorial Guinea after many years of successful investment and co-operation and we thank the Government of Equatorial Guinea for their continued support. Gabon remains a core country of operations for Tullow and we will continue to invest in our assets and seek new opportunities.”

About Tullow Oil plc

Tullow is a leading independent oil & gas, exploration and production group, quoted on the London, Irish and Ghanaian stock exchanges (symbol: TLW). The Group has interests in over 70 exploration and production licences across 14 countries in Africa and South America.

About Panoro Energy

Panoro Energy ASA (OSE ticker: “PEN”) is an independent E&P company based in London and listed on the Oslo Stock Exchange with ticker PEN. The Company holds high quality production, exploration and development assets in Africa, namely the Dussafu License offshore southern Gabon, OML 113 offshore western Nigeria, and the TPS operated assets, Sfax Offshore Exploration Permit and Ras El Besh Concession, offshore Tunisia.