Tullow Oil plc (Tullow) is pleased to announce that, via its subsidiary, Tullow Oil Gabon S.A. (Tullow Gabon), it has signed an asset swap agreement with Perenco Oil and Gas Gabon S.A. (Perenco). This is intended to optimise Tullow’s equity ownership across key fields in Gabon and will be achieved through a cashless asset swap involving the proposed exchange of participating interests held by both parties in certain licences in Gabon (the Transaction).

Transaction Highlights:

   - Simplifies and equalises Tullow’s equity ownership across key fields in Gabon, creating better alignment between the participating interest partners and streamlining processes.
   - Enables Tullow to leverage its technical skills and focus on more material positions in key fields and places the Tchatamba facilities as a core hub for Tullow.
   - Achieves an improved portfolio balance between discovered resources and appraisal and exploration assets, with clear opportunities to maximise the value of the assets, in line with the Group’s infrastructure-led exploration (ILX) growth strategy.
   - Provides access to future growth through Tullow’s interest in the DE8 licence where several ILX opportunities have been identified that could be tied into existing Tchatamba facilities.
   - Assignment and transfer by Tullow Gabon of its existing percentage participating interests in the Limande, Turnix, Moba and Oba assets and part of its existing percentage of the Simba assets to Perenco.
   - Assignment and transfer by Perenco of part of its existing percentage participating interests in each of the Kowe (Tchatamba) and DE8 assets to Tullow Gabon, resulting in post-completion holdings of 40%*for Tullow Gabon (see table below).
   - Tullow’s 2023 Group production guidance of 58,000 to 64,000 bopd and cash flow guidance of c.$200 million at $100/bbl remains unchanged.
   - Nil consideration transaction with no impact on Tullow’s liquidity headroom.
   - The Transaction is subject to certain market-standard conditions precedent, including customary government and regulatory approvals.
   - Completion of the Transaction is expected by the end of 2023 with an economic date of 1 February 2023.

   - Rahul Dhir, Chief Executive Officer, Tullow Oil plc   - , commented:
“This deal is an example of Tullow’s strategy in action as we continue to take proactive steps to optimise our portfolio to focus on high return producing assets and growth opportunities around existing infrastructure. Our Gabon assets are a valuable and important part of our asset base, and this transaction enhances our exposure to preferred fields. We look forward to working closely with our Partner to maximise their full potential.”

About Tullow Oil plc

Tullow is an independent oil & gas, exploration and production group which is quoted on the London and Ghanaian stock exchanges (symbol: TLW) and is a constituent of the FTSE250 index. The Group has interests in over 30 exploration and production licences across eight countries. In March 2021, Tullow committed to becoming Net Zero on its Scope 1 and 2 emissions by 2030.