Tullow in $400 million debt deal, Ghana oil marketing pact with Glencore
Tullow in $400 million debt deal, Ghana oil marketing pact with Glencore

Tullow in $400 million debt deal, Ghana oil marketing pact with Glencore

Tullow Oil says it has signed a $400 million five-year debt deal with Glencore to help manage its senior notes maturing through 2026 and will see the trading house take over marketing the crude from its flagship Ghana oilfields.

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The facility, with Glencore Energy UK Ltd, will be available to draw for 18 months and allow Tullow to address all its outstanding 2025 notes and also refinance its 2026 notes, CEO Rahul Dhir said in a statement.

The facility "significantly de-risks" Tullow's ability to refinance its 2026 notes, Peel Hunt analysts wrote in a note.

"This uncertainty has been a key drag on the share price and we expect the shares to react well to today's announcement," the brokerage said.

Tullow's shares were up 3.6% at 31.5 pence in early trade. They have fallen more than 17% this year.

The company also signed an oil marketing and offtake contract with Glencore for Tullow's crude oil entitlements in Ghana and Gabon. Tullow had previously marketed the crude in-house.

The deal includes all output from its Jubilee and TEN fields offshore Ghana, a spokesperson said.

Tullow expects net volumes from its Ghana fields of around 46,000 barrels per day (bpd) this year in addition to around 10,000 bpd from Gabon.

Tullow reiterated its free cashflow guidance of $800 million between this year and 2025.

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