Multinational oil and gas company Tullow Oil has signed a five-year debt deal with Swiss multinational commodity trading and mining company Glencore to the tune of $400 million. The deal aims to support Tullow in the management of its senior maturing through 2026.
Tullow Oil CEO Rahul Dhir stated that the facility would allow the company to address all outstanding 2025 notes while refinancing its 2026 notes.
At the same time, the companies inked a marketing and offtake contract which would see Glencore market Tullow’s crude from its entitlements in Gabon (10,000 barrels per day in 2023) and Ghana (46,000 bpd in 2023). The deal includes all output from the Jubilee and TEN field, offshore Ghana.
Meanwhile, the multinational oil and gas company has also revised its production levels for 2023 downwards, while raising its annual cash flow outlook due to increased sales in Gabon. Citing delays at the Jubilee oilfield in Ghana, Tullow revised its crude output for the year from between 58,000-64,000 bpd to 58,000-60,000 bpd. Output is set to decrease marginally once again due to reduced water injection at the field.
However, the company also raised its annual cash flow outlook from $100 million to $150 million, due to increased crude sales in Gabon alongside deferral of a portion of capital expenditure in the country.
