Tullow Oil Unveils Capital Overhaul, Extends Debt to 2028 in West Africa Push

Tullow Oil has announced a sweeping capital restructuring and a series of strategic deals aimed at strengthening its balance sheet and reinforcing its footprint in West Africa.

The heavily indebted oil producer said it has signed a refinancing agreement with Glencore and holders of roughly two-thirds of its $1.3 billion senior secured notes due May 2026, extending debt maturities by more than two years to November 2028.

The move is designed to ease near-term financial pressure as the company grapples with natural production declines and delayed government payments that have strained cash flow.

Ghana Asset Expansion

In a parallel move, Tullow agreed to acquire the floating production, storage and offloading (FPSO) vessel serving Ghana’s TEN oilfields for $205 million.

Chief Executive Officer Ian Perks said the acquisition is expected to reduce fixed costs and enhance long-term cash generation.

The company has also secured an agreement with the Ghanaian government to extend its West Cape Three Points and Deep Water Tano petroleum licences — a key step in preserving production continuity and future development potential.

Securing the Financial Runway

Perks described the refinancing as critical to stabilising operations.

“By extending maturities and optimising our cash interest profile, we have secured the financial runway to improve performance, execute our business plan and secure additional value for stakeholders,” he said in a statement.

Following the refinancing, Tullow expects liquidity headroom — including free cash and undrawn facilities — to exceed $200 million.

Market Reaction and Outlook

Shares of the London-listed company, which had surged about 23% on Thursday after losing more than 70% in 2025, swung between gains and losses in early Friday trading.

Looking ahead, Tullow expects 2026 production to average between 34,000 and 42,000 barrels of oil equivalent per day (boepd), compared with 40,400 boepd reported in 2025.

While output is projected to remain broadly stable, the capital overhaul signals a strategic reset for the company as it seeks to rebuild investor confidence, streamline costs and secure sustainable growth across its West African portfolio.

Source: Accra Business News