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Tullow Secures $450m of Capital Under its Existing Credit Facilities

Source: www.gulfoilandgas.com 3/20/2015, Location: Europe

Tullow Oil plc (Tullow) is pleased to announce the following update on its financing and banking arrangements. Tullow and its lending banks have:

- completed the six-monthly Reserve Based Lend (RBL) redetermination process; the quality of our asset portfolio supported a US$200 million increase in lenders commitments, increasing available debt capacity from US$3.5 billion to US$3.7 billion, despite lower oil prices;
- arranged an additional US$250 million of lenders commitments, secured through the corporate credit facility which has been increased from US$750 million to US$ 1 billion; and
- agreed an amendment to the financial covenant on the RBL and corporate facility to address the risk of any potential covenant breach during a period of oil price volatility and investment in production and development assets in West Africa.

As a result, the Group has around US$6.3 billion of currently committed debt facilities with no near term maturities.

Ian Springett, Chief Financial Officer, Tullow Oil plc, commented:

"Today’s announcement marks another important step in the comprehensive re-setting of our business and financing and demonstrates the resilience of our debt capital structure and the quality of ourortfolio to generate significant liquidity, even at low oil prices. We have diversified our balance sheet, significantly reduced exploration capital expenditure, restructured the business to generate projected savings of US$500 million, suspended the dividend and are also benefiting from our ongoing hedging programme. The strong support we have received from our relationship banks ensures that Tullow is well funded and is an important endorsement of our financial strategy and assets."

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Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 


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