Tullow shares up after deal on Gabon oil fields
Published 09/10/2015 | 02:30
Shares in Irish-listed Tullow Oil rose yesterday after it reached an agreement to recover its stake in several oil fields that it risked losing to the government of Gabon.
Last year, Gabon oil minister Etienne Ngoubou locked Tullow Oil out of talks on the renewal of a licence on the onshore Onal field, threatening the company's 7.5pc stake in the venture.
Tullow announced yesterday that following negotiations with the government, it has regained its stake in the fields. It is estimated that the Onal group of fields contribute about 2,000 barrels of oil per day to Tullow's West African operations.
Tullow said that the deal allowed it to maintain its full year production guidance for West Africa at 66,000-70,000 barrels of oil per day.
The update helped to further bolster Tullow's share price, which has now risen by more than 50pc since the end of September. Shares in Tullow were up 2.5pc to 248 pence in London trading yesterday. This compared to a price of 157.6 pence on September 28.