Banking Facility

RNS Number : 5040O

Tullow Oil PLC

09 March 2009

 



News Release 

US$2 billion new debt funding secured

9 March 2009 - Tullow Oil plc (Tullow) announces that it has finalised arrangements for US$2 billion of new reserve based lend debt facilities. 

The US$2 billion of debt is split between a Senior Facility of US$1.785 billion, a Junior Facility of US$100 million and an IFC facility of US$115 million with a final maturity of December 2015. The margin on the Senior and IFC facilities, depending on the level drawn, is up to 3.75% over US$ LIBOR.

On Friday 6 March, facility documentation for US$1.885 billion was executed by BNP Paribas, Bank of Scotland Plc, Barclays Bank PLC, Calyon, ING Bank N.V., Lloyds TSB Bank plc, Natixis SA, NIBC Bank N.V., Société Générale, Standard Bank Plc, Standard Chartered Bank, Sumitomo Mitsui Banking Corporation, and The Royal Bank of Scotland plc. In addition, IFC, a member of the World Bank Group, have Board approval to provide the remaining US$115 million.

The new debt facilities will replace the Group's existing reserve based lend debt arrangements and provide funding for Tullow's future capital commitments, including the world-class Jubilee project in Ghana.

Commenting today, Ian Springett, Chief Financial Officer, said:

'These new debt arrangements represent a major milestone in the development of Tullow's financial capability. To put in place debt arrangements of this scale, particularly in the current credit environment, is a tremendous achievement. This demonstrates the quality of Tullow's assets as well as the strength of our banking relationships. Combined with our equity placing in January, we are strongly positioned to pursue our current investment plans and longer term growth strategy.'

FOR FURTHER INFORMATION CONTACT:

Tullow Oil plc  ([phone]) Ian Springett Chris Perry

Citigate Dewe Rogerson  ([phone])  Martin Jackson George Cazenove

Murray Consultants  ([phone])  Joe Murray  Ed Micheau

Notes to Editors

Tullow is a leading independent oil & gas, exploration and production group, quoted on the London and Irish Stock Exchanges (symbol: TLW) and is a constituent of the FTSE 100 Index. The Group has interests in over 85 exploration and production licences across 22 countries and focuses on four core areas: Africa, Europe, South Asia and South America.

In Africa, Tullow has production in Gabon, Côte d'Ivoire, Mauritania, Congo (Brazzaville) and Equatorial Guinea and two large appraisal and development programmes in Ghana and Uganda. Tullow also has exploration interests in Gabon, Côte d'Ivoire, Mauritania, Senegal, Congo (DRC), Tanzania, Madagascar, Namibia and Angola.

Tullow's European interests are primarily focused on gas in the UK Southern North Sea where it has significant interests in the Caister-Murdoch System and the Thames area. The company also has interests offshore the Netherlands and Portugal.

In South Asia, Tullow has exploration and production in Pakistan and Bangladesh and exploration activities in India. In South America, Tullow has exploration interests in Guyana, French Guiana and Suriname. 

For further information please refer to our website at www.tullowoil.com.

 

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