Tullow Oil explores potential sale of non-core assets to reduce debt pile

(Sharecast News) - Oil and gas exploration firm Tullow Oil said on Thursday that it was exploring a potential sale of its non-core assets as part of an effort to bring its debt below $1.0bn.

Tullow Oil, which has $493.0m of bonds that come due on 1 March, said it will partly meet its financial obligations by drawing down upon a facility provided to it by Glencore. It also stated it intends to "refinance and simplify" the remainder of its debt in FY25.

The London-listed group said non-core asset sales would further reduce both its debt and the scope of operations but stated disposals would only be considered where the level of proceeds would be accretive to both equity and leverage.

Tullow added that it expects working interest production to average 50,000 to 55,000 barrels of oil equivalent per day in FY25 and also aims to identify future well locations at its Ghana assets.

As of 1110 GMT, Tullow shares were up 0.052% at 19.40p.

Reporting by Iain Gilbert at Sharecast.com

Tullow Oil