Tullow Oil Plc has signed a definitive sale and purchase agreement with Gabon Oil Company (GOC) to divest its entire non-operated working interests in Gabon for $300mn, as part of efforts to strengthen its balance sheet and focus on higher-margin assets, the West Africa-focused energy producer has announced.

The transaction involves the sale of Tullow Oil Gabon S.A. through its subsidiary, Tullow Gabon Limited, and is expected to close by mid-2025, subject to regulatory and governmental approvals. The deal includes approximately 10,000 barrels per day (bpd) of forecast production for 2025 and 36mn barrels of proven and probable (2P) reserves, as independently audited at the end of 2024.

Under the agreement, the full consideration of $300mn is payable in cash, net of tax and subject to post-completion adjustments. 

Tullow, listed in London and Accra, has been divesting non-core assets to reduce debt and optimise its capital structure. The Gabon divestment follows the company’s announcement in April 2025 of an agreement to sell its Kenyan operations to Nairobi-based Gulf Energy Ltd for at least $120mn, and comes after Kosmos Energy withdrew from preliminary acquisition talks in late 2024.

Richard Miller, Tullow's Chief Financial Officer and interim CEO, said the transaction would help reduce leverage and support future growth. 

“The proceeds, expected in the coming months, will materially reduce our net debt and strengthen our balance sheet, which positions us well as we look to optimise our capital structure,” he said.

The sale represents a significant shift in Tullow’s portfolio, as the company continues to prioritise operational efficiency and capital discipline amid fluctuating market conditions and shareholder expectations. The proceeds are expected to be redeployed into Tullow’s core assets, where the company sees potential for stronger returns.

Established in the late 1980s, and initially focused also on exploration in the UK and South Asia, Tullow experienced significant growth in the 2000s through acquisitions and major discoveries, including the Jubilee field in Ghana, producing assets in Gabon and Côte d’Ivoire, and a discovery in Kenya, reaching a market value of nearly $22bn by 2012.

However, the explorer has faced setbacks owing to operational challenges, underwhelming exploration results, leadership changes and waning investor interest as attention shifted globally towards the energy transition.

In Kenya, after repeated setbacks, Tullow said in March 2024 it would write off $17.9mn worth of its assets in the East African country on the uncertainty over attracting a strategic investor and commercial exploitation of the Turkana oil deposit.