Monday 19 March 2018

Tullow secures bank support as TEN project nears completion

Aidan Heavey, chief executive of Tullow Oil. Photo: Mark Condren
Aidan Heavey, chief executive of Tullow Oil. Photo: Mark Condren
Michael Cogley

Michael Cogley

Irish oil and gas explorer Tullow Oil said a 12-month extension on its reserve based lending (RBL) highlights the "continued support" offered by the banks during a period of low oil prices.

In a statement issued to shareholders ahead of the its AGM later today Tullow said production in West Africa and Europe was marginally below expectations due to the need to implement new off-take procedures at the end of March.

Last month the company's floating production storage and offloading (FPSO) vessel Kwame Nkurmah was placed on heading control after its turret bearing was damaged.

Tullow chief executive Aidan Heavey said it has been a very busy start to the year for the company.

"I am very pleased to announce the completion of our RBL re-determination and the extension of our RCF. This demonstrates the continued strong support of our lending banks and is an important sign of confidence in Tullow’s excellent asset portfolio," he said.

Tullow secured available debt capacity of $3.5bn under its RBL and itss lending banks also agreed a further amendment to the financial covenant on the RBL and the corporate facility.

The first amortisation of the RBL is scheduled in October of this year, when it will look to reduce its RBL to $3.25bn.

Net debt at the company is estimated to be roughly $4.5bn at the end of April.

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