Tullow Oil Company has begun to shield its financial future through a strategic refinancing transaction. This move has been consolidated following the signing of a lock-up agreement backed by 66% of its senior lenders and the giant Glencore.
Capital restructuring and maturity extension with Glencore
Fundamentally, the transaction allows for the conversion of senior secured notes maturing in May 2026 into new instruments maturing in November 2028. This debt relief includes an initial amortization of US$100 million and a cash interest optimization.
In addition, the relationship with Glencore is strengthened through a new prepaid load line of up to US$100 million, which guarantees immediate liquidity to maintain the pace of investment in the active fields. active fields..
Behind these numbers is a clear intention to maximize resource value in Ghana. The stability achieved with this capital restructuring aligns with projects for 2026, such as the license extension to 2040 and the drilling program at Jubilee.
Tullow Oil seeks to ensure that cash flow generation is reinvested in operational efficiencies and the resolution of outstanding tax disputes with the Ghanaian government.
The agreement also provides for a substantial improvement in internal control mechanisms. At least three new independent non-executive directors will be integrated to oversee the execution of the business plan.
This committee will be tasked with ensuring strong financial discipline as the company explores ways to increase the value of its 2P reserves. Management stresses that this transaction does not generate dilution for existing shareholders, keeping the share capital intact.
Source and photo: Tullow Oil