Tullow Oil has unveiled a broad refinancing and restructuring package aimed at strengthening its balance sheet, extending debt maturities, and improving liquidity, according to Reuters.
Central to the overhaul is an agreement with commodity trader Glencore and holders of roughly two-thirds of Tullow’s $1.3 billion senior secured notes due in May 2026. The deal extends the maturity of the notes to November 2028 and reduces near-term repayment pressure. It also introduces a new junior note facility maturing in 2030 and a $100 million super-senior cargo prepayment facility to enhance liquidity without diluting shareholders.
As part of the restructuring, Tullow agreed to acquire the floating production, storage and offloading vessel serving the TEN oilfields offshore Ghana for about $205 million. The move is expected to lower fixed operating costs and improve long-term cash flow. The company also secured extensions to its West Cape Three Points and Deep Water Tano petroleum agreements with the Government of Ghana, reinforcing the stability of its core producing assets, MarketScreener highlighted.
Tullow said the combined measures are expected to provide more than $200 million in additional liquidity headroom, positioning the company to execute its forward strategy and stabilise production. The capital overhaul marks a significant step in Tullow’s efforts to navigate operational pressures while restoring financial flexibility.
