Tullow Oil, partly owned by Beninese-Gabonese billionaire, secures $1.3B debt reprieve

In the high-stakes world of finance, access to cash can make or break an oil producer. Tullow Oil Plc is now buying itself time. The London-listed explorer, partly owned by Beninese-Gabonese billionaire Samuel Dossou-Aworet, has struck a deal with bondholders and Glencore Energy UK Limited to delay a looming repayment and ease pressure on its balance sheet.

The agreement comes as the Africa-focused group works through a $1.3 billion bond due in May. Under the proposed refinancing, Tullow will repay at least $100 million and extend the remaining debt to November 2028. The plan still needs approval from more than 90 percent of bondholders to avoid court action, but early support has come from roughly two-thirds of creditors, alongside Glencore, which previously provided a $400 million lending facility.

Tullow secures $200 million debt relief

Investors reacted quickly. Tullow’s bonds climbed 5.7 cents to trade near 85 cents on the dollar, pointing to confidence that the company can steady its finances. Still, that relief comes at a price. The extended bonds will carry a 10.25 percent cash interest rate, alongside a 3 percent payment-in-kind component, allowing interest to be added to the principal. Another 1.75 percent “pay if you can” feature means some payments can be deferred, depending on cash flow.

As part of the wider package, Glencore will replace its existing loan with junior notes due in May 2030, also with payment-in-kind interest. It will also provide a new $100 million super senior cargo prepayment facility. Altogether, the measures are expected to leave Tullow with more than $200 million in available liquidity once completed.

The deal reflects the challenges Tullow has faced in recent years. The company took on significant debt to develop oil discoveries but struggled to bring some projects into full production and expand beyond its core West African base. Attempts to raise cash through asset sales, including disposals in Kenya and Gabon, have not fully closed its funding gap, while weaker credit metrics have limited access to fresh borrowing.

Ghana oil output targets 42,000 barrels

Samuel Dossou-Aworet, founder of Petrolin Group, has been a pivotal figure in Africa’s oil and gas sector since 1992, building a portfolio of major energy deals across the continent. His 16.8 percent stake in Tullow—243,635,633 shares—is currently valued at $35.9 million.

Meanwhile, Tullow has intensified its focus on core assets in Ghana. In November 2025, the company secured extensions for the Jubilee and TEN field licenses through 2040 and agreed on new gas pricing terms for the period. It also moved to acquire a floating production and storage vessel for $205 million, underscoring its commitment to long-term output.

Production is projected between 34,000 and 42,000 barrels per day in 2026, compared with roughly 40,400 barrels per day last year, supported by new wells at Jubilee. Leadership changes are also underway, with former Trafigura executive Roald Goethe appointed chairman and plans to add new independent directors.