Tullow Oil on Friday announced a broad capital revamp and a series of deals to deepen its presence in West Africa, as the heavily indebted firm moves to steady its operations and secure longer-term growth.
The company has signed a refinancing deal with Glencore and owners of about two-thirds of its $1.3 billion senior secured notes due May 2026, extending debt maturities by more than two years to November 2028, it said.
Tullow has been fighting with natural production declines and delayed government payments, which have strained cash flow and forced the independent oil producers to cut costs amid mounting debt.
The company also separately agreed to buy the floating production, storage, and offloading vessel serving Ghana's TEN oilfields for $205 million, in a deal CEO Ian Perks said will cut fixed costs and boost long-term cash flow.
It has also struck a deal with the Ghanaian government to extend its West Cape Three Points and Deep Water Tano Petroleum agreements.
RUNWAY FOR DEVELOPMENT
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," Perks said in a statement.
Shares of the company, which rose about 23% on Thursday after falling more than 70% in 2025, swung between gains and losses in early Friday trading.
Following the refinancing, Tullow now expects to have liquidity headroom of free cash and undrawn facilities in excess of $200 million.
The London-listed oil producer said it expects its 2026 output to average between 34,000 and 42,000 barrels of oil equivalent per day, compared with 40,400 boepd reported in 2025.
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