Tullow Oil announced on Wednesday that it has completed the refinancing of US$2.5 billion of Reserves Based Lending (RBL) credit facilities.
The US$2.5 billion of credit facilities are split between a commercial bank facility of US$2.4 billion and an IFC facility of US$100 million. The fully committed facilities are revolving with a three-year grace period and final maturity of November 2024, the company said.
The transaction, which was formally launched in early October following the resolution of the Ghana – Cote d’Ivoire border dispute, was materially over-subscribed and extends the maturity of the Group’s existing RBL credit facilities. Tullow has also decided to reduce the commitments of its Revolving Corporate Credit Facility to US$600 million from US$800 million, ahead of the scheduled amortisation in January 2018.
Following the refinancing of the RBL credit facilities and the reduction of the Revolving Corporate Credit Facility, Tullow has total headroom including free cash of US$0.9 billion with no material near-term debt maturities.
Commenting on this development, Les Wood, Chief Financial Officer, said, “The refinancing of our RBL credit facility was a key objective for 2017 and we are very pleased to have completed this process in line with stated guidance and ahead of our year-end target. The success of this transaction clearly demonstrates the high quality of the Group’s assets, our ability to generate free cash flow and the strength of our long-standing banking relationships. Following this refinancing, we have no material near-term debt maturities and will enter 2018 in a strong financial position.”
Tullow recently entered into an option agreement on the Orinduik block offshore Guyana with Total E&P Activités Pétrolières. This agreement provides Total with an option to acquire a 25% Working Interest in the block from Eco Guyana which currently holds 40% and Tullow, the Operator, holds the remaining 60%.
The company also has interest in Suriname where it recently came up dry at the Araku-1 exploration well on Block 54.