UK's Tullow Oil to sell Kenya assets for at least $120 million
April 15 (Reuters) - West Africa-focused oil and gas explorer Tullow Oil (TLW.L), opens new tab said on Tuesday it would sell its assets in Kenya to Gulf Energy Ltd for at least $120 million as it works to reduce its debt.
Tullow will get three $40 million payments, be entitled to royalty payments and have the right to 30% participation in potential future development phases at no cost, it said in a statement.
The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here.
The company's Kenyan oilfields have not been brought into full production as any export route would require building hundreds of miles of a heated pipeline to the coast. It recorded a $145 million write-off on these operations last year.
In May 2023, the UK-listed company became the sole owner of the Lokichar oilfield after its license partners TotalEnergies (TTEF.PA), opens new tab and Africa Oil Corp withdrew, opens new tab and sale, opens new tab talks with Indian state-run companies did not result in a deal.
Last month, Tullow agreed to sell its working interests in Gabon for $300 million in cash.
It had net debt of around $1.5 billion at the end of last year. The company had a market capitalisation of around $255 million as of Tuesday.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
22 minutes ago
- Reuters
Japan wholesale inflation slows in May
TOKYO, June 11 (Reuters) - Japan's wholesale prices rose 3.2% in May from a year earlier, data showed on Wednesday, slowing from April in a sign falling import costs for raw materials were easing price pressures for companies. The rise in the corporate goods price index (CGPI), which measures the price companies charge each other for their goods and services, compared with a median market forecast for a 3.5% annual increase and follows a revised 4.1% increase in April. The yen-based import price index fell 10.3% in May from a year earlier after a revised 7.3% drop in April, the data showed, indicating the currency's rebound was pushing down the cost of raw material imports.
North Wales Chronicle
30 minutes ago
- North Wales Chronicle
Starmer and Reynolds meet US commerce secretary in push to implement trade deal
The Prime Minister dropped in on a meeting between Howard Lutnick and Business Secretary Jonathan Reynolds in Downing Street on Tuesday. Mr Lutnick was in London for talks with China on resolving the trade war between Washington and Beijing, and Mr Reynolds took the opportunity to meet him in person to push for the UK-US trade deal announced last month to be implemented as soon as possible. The meeting follows talks between the Business Secretary and US trade representative Jamieson Greer in Paris last week. Under the terms of the agreement announced by Sir Keir and Donald Trump, the US will implement import quotas that will effectively eliminate tariffs on British steel and cut the levy on vehicles to 10%. But the deal has yet to be implemented and tariffs on both steel and cars remain at 25%, although the UK has been spared the increase on steel duties to 50% that Mr Trump imposed on the rest of the world last week. In a post on social media, Mr Reynolds said he had discussed 'progress on our trade deal – including UK autos and steel' with Mr Lutnick. UK officials remain hopeful that the deal will be implemented soon, but Tuesday's meeting does not appear to have moved the issue beyond both sides agreeing the need to move quickly. Speaking in the Commons last week, Sir Keir said he was 'very confident' that tariffs would come down in line with the deal 'within a very short time'. Implementing the deal will require the UK to pass legislation, likely to involve regulations rather than a full Act of Parliament, while the US will also need to create a legal mechanism to bring steel and vehicle quotas into effect.
Glasgow Times
an hour ago
- Glasgow Times
Starmer and Reynolds meet US commerce secretary in push to implement trade deal
The Prime Minister dropped in on a meeting between Howard Lutnick and Business Secretary Jonathan Reynolds in Downing Street on Tuesday. Mr Lutnick was in London for talks with China on resolving the trade war between Washington and Beijing, and Mr Reynolds took the opportunity to meet him in person to push for the UK-US trade deal announced last month to be implemented as soon as possible. The meeting follows talks between the Business Secretary and US trade representative Jamieson Greer in Paris last week. Under the terms of the agreement announced by Sir Keir and Donald Trump, the US will implement import quotas that will effectively eliminate tariffs on British steel and cut the levy on vehicles to 10%. But the deal has yet to be implemented and tariffs on both steel and cars remain at 25%, although the UK has been spared the increase on steel duties to 50% that Mr Trump imposed on the rest of the world last week. In a post on social media, Mr Reynolds said he had discussed 'progress on our trade deal – including UK autos and steel' with Mr Lutnick. UK officials remain hopeful that the deal will be implemented soon, but Tuesday's meeting does not appear to have moved the issue beyond both sides agreeing the need to move quickly. Speaking in the Commons last week, Sir Keir said he was 'very confident' that tariffs would come down in line with the deal 'within a very short time'. Implementing the deal will require the UK to pass legislation, likely to involve regulations rather than a full Act of Parliament, while the US will also need to create a legal mechanism to bring steel and vehicle quotas into effect.
