Tullow Oil sells oil and gas assets in Guyana

GEORGETOWN, August 10, 2023 – Tullow Oil has agreed to sell its operating interest in the offshore Orinduik block in Guyana to independent Eco Guyana Oil and Gas, the London-based multinational oil and gas company announced on Thursday.

The transaction will see the buyer take full ownership of Tullow Oil’s subsidiary Tullow Guyana in exchange for USD 700,000 in cash and contingent payments of USD 4 million in the event of a commercial discovery, USD 10 million upon issuance of a production licence and royalty payments amounting to 1.75% of the 60% working interest entitlement on future production.

Eco Guyana Oil and Gas already holds a 15% stake in the concession.

Completion of the deal is expected in H2 2023 and is subject to government and joint venture approvals.

In 2019, Tullow Oil drilled two exploration wells on the block that were deemed unsuited for commercial production.

An additional well is required under the exploration licence that expires in 2026.

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