Saturday 3 December 2016

Tullow Oil strikes deal with Gabonese government to regain stake in oil fields

Published 08/10/2015 | 07:23

Tullow Oil chief executive Aidan Heavey. Photo: John Cogill
Tullow Oil chief executive Aidan Heavey. Photo: John Cogill

Irish-listed Tullow Oil has reached an agreement to recover its stake in oil fields that had been expropriated by Gabon.

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Last year, Gabon oil minister Etienne Ngoubou locked Tullow Oil out of talks on the renewal of a licence on the onshore Onal field, in effect expropriating the company's 7.5pc stake.

In a statement released this morning Tullow said that following negotiations with the government in the African country, the company has regained its 7.5pc stake in the Onal Complex producing fields and the Ezanga block.

"In addition, Tullow has been granted licence extensions in the Onal Complex fields until 2034 and has gained access to two small oil discoveries made within the Ezanga block in 2014," the company said. "In return for access to these discoveries, it has been agreed that the effective date of the new licence will be 1 August 2015."

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.

Tullow chief executive Aidan Heavey said:“I am very pleased that this deal has been agreed which guarantees Tullow’s long-term future in Gabon. We have had operations in Gabon for over ten years and I look forward to investing further in Gabon over the coming decades.

"Our West African non-operated portfolio, which has Gabon at its heart, continues to perform exceptionally well, providing important and stable production for the Group.”

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