Tullow Oil PLC on Monday said it entered into a five-year notes facility agreement with Glencore Energy UK Ltd, part of Glencore PLC.

The oil and gas explorer and producer said the $400 million facility is available for drawing upon, and it will use proceeds to manage the liability of its senior notes maturing in March 2025.

The company also entered into oil marketing and offtake contracts with Glencore Energy for its crude oil entitlements from Jubilee and TEN fields in Ghana and the Rabi Light entitlements in Gabon.

‘Today’s announcement demonstrates our ability to access long-term capital from a variety of sources and this facility is a material step in our refinancing strategy, following the successful and equity accretive tender offer in June,’ said Tullow Chief Executive Officer Rahul Dhir.

Alex Sanna, CEO of Glencore’s oil & gas division, said: ‘’We are pleased to complete this landmark $400 million notes facility for Tullow, along with the term oil marketing and offtake contracts from Tullow’s production in Ghana and Gabon. This facility is a strong endorsement of Tullow’s business plan and strategy, and demonstrates Glencore’s capability in structuring finance solutions across the oil and gas sector.‘

Tullow Oil shares rose 8.3% to 32.93 pence each on Monday morning in London.

Copyright 2023 Alliance News Ltd. All Rights Reserved.