Deal to Sell Gabon Assets, Shifts Focus to Core Operations
London – March 24, 2025
Tullow Oil PLC, the UK-based independent oil and gas exploration company, has announced a blockbuster deal to sell its Gabon assets to Gabon Oil Company (GOC) for a hefty $300 million in cash. The agreement, revealed today, marks a pivotal shift in Tullow’s strategy as it divests non-core assets to streamline its portfolio and bolster its financial position amid a rapidly evolving energy landscape.
The transaction includes the sale of Tullow Oil Gabon SA, encompassing all of the company’s stakes in Gabon, a key West African oil-producing nation. These assets account for approximately 10,000 barrels of oil per day (bopd) in projected 2025 production and hold an estimated 36 million barrels of 2P (proven and probable) reserves. With an effective date of January 1, 2025, the deal is expected to close in the second quarter of 2025, pending customary approvals from the Gabonese government and the CEMAC Competition Commission.
“This is a transformative step for Tullow as we sharpen our focus on high-return, cash-generative assets,” said Rahul Dhir, Tullow’s Chief Executive Officer, in a statement. “The sale of our Gabon portfolio to Gabon Oil Company not only delivers significant value to our shareholders but also aligns with our long-term vision of operational efficiency and financial resilience.”
The $300 million cash influx comes at a critical juncture for Tullow, which has been working to reduce its debt burden and optimize its operations. The company has faced challenges in recent years, including fluctuating oil prices and a heavy debt load that once exceeded $2.4 billion. Under Dhir’s leadership since 2020, Tullow has pursued a disciplined approach, shedding non-core assets—like its Uganda holdings sold to Total for $575 million in 2020—and doubling down on flagship projects in Ghana, such as the Jubilee and TEN fields.
Analysts hailed the deal as a win for Tullow. “This is a masterstroke by management,” said James Carter, an energy analyst at Peel Hunt. “Securing $300 million for Gabon, which represents a rich valuation given the production and reserve profile, provides Tullow with much-needed liquidity to tackle its 2026 notes and invest in Ghana’s high-growth potential.” Shares of Tullow Oil (LSE: TLW) surged in early trading on the London Stock Exchange, reflecting investor confidence in the move.
The sale also underscores Gabon’s push to consolidate control over its oil sector. Gabon Oil Company, the state-owned entity, has been aggressively expanding its footprint, competing with private players like Perenco to secure strategic assets. Posts on X highlighted the intense bidding war, with one user noting, “GOC outmuscled Perenco to snag Tullow’s Gabon portfolio—big win for the state.” The deal aligns with Gabon’s broader economic strategy following a 2023 coup, which has seen the military-led government prioritize resource nationalization.
For Tullow, exiting Gabon doesn’t mean abandoning West Africa entirely. The company retains a strong presence in Ghana and Côte d’Ivoire, where it continues to leverage existing infrastructure for exploration and production. In 2023, Tullow secured license extensions in Gabon until 2046, but the decision to sell suggests a calculated pivot away from smaller, non-operated fields toward assets with greater scale and profitability.
The transaction’s financial impact is immediate and significant. Tullow expects the proceeds to strengthen its balance sheet, providing flexibility to manage upcoming debt maturities, including $1.8 billion in senior notes due in 2026. The company has already taken steps to de-risk its finances, such as a $400 million debt facility with Glencore in 2023, and this latest sale further solidifies its fiscal footing.
Environmentalists, however, raised concerns about the deal’s implications. “While Tullow offloads Gabon, the question remains: will GOC prioritize sustainable practices, or will this just perpetuate oil dependency?” asked Sarah Mills of Greenpeace Africa. Gabon, an OPEC member, has faced scrutiny for balancing oil revenue with climate commitments, a tension that could intensify under GOC’s stewardship.
As the deal awaits regulatory green lights, the energy world is watching closely. For Tullow, it’s a bold step toward a leaner, more focused future. For Gabon, it’s a chance to assert greater sovereignty over its oil wealth. Either way, this $300 million handshake is set to reverberate across the industry, proving that even in a volatile market, strategic moves can yield big rewards.
