Proposed sale of Hewett Unit

RNS Number : 3323W

Tullow Oil PLC

10 June 2008

 



News release 

Proposed sale of Hewett Unit interest to Eni

10 June 2008 - Tullow Oil plc (Tullow) announces that it has signed a Memorandum of Understanding with Eni UK (Eni) for the sale of its 51.69 % interest in the offshore Hewett Unit fields and related infrastructure, including the onshore Bacton terminal. The total consideration for the transaction is £210 million, payable in cash on completion and Eni will also assume Tullow's share of all associated abandonment liabilities. At 31 December 2007, net booked Commercial Reserves associated with the Hewett Unit totalled 10 Bcf and current production from the Hewett complex is approximately 12 mmscfd net to Tullow's interest.

The Memorandum of Understanding forms the basis for definitive sale and purchase documentation which will be signed over the coming weeks. Tullow expects the transaction to complete by the end of 2008, once relevant approvals have been obtained. Eni is an existing partner in the Hewett Unit and the acquisition of Tullow's stake will raise Eni's total ownership in the Unit to an 89% operated interest.  

The Southern North Sea gas business remains a core Tullow asset. Recent portfolio adjustments leave the company better placed to add significant value and increase its already significant position in the basin. Thames area fields will continue to export gas via the Bacton terminal. 

Commenting today, Aidan Heavey, Chief Executive of Tullow said: 

'The sale of Hewett completes the restructuring of Tullow's Southern North Sea interests and will free up capital for further investment in the region and across the Group. Today's transaction brings total 2008 portfolio management proceeds to approximately US$1 billion and leaves Tullow ideally placed to fund the major growth anticipated over the coming years.'

For further information contact: 

Tullow Oil plc  ([phone]) Aidan Heavey Paul McDade

Citigate Dewe Rogerson  ([phone])  Kate Delahunty  George Cazenove

Murray Consultants  ([phone])  Joe Murray Joe Heron

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 100 exploration and production licences across 23 countries and focuses on four core areas: Europe, Africa, South Asia and South America.

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-Hewett areas and operates over 70% of its production. The company also has interests offshore the Netherlands and Portugal.

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

In South Asia, Tullow has exploration and production in Pakistan and Bangladesh and high impact exploration activities in India.

In South America Tullow has high impact exploration interests in Trinidad and Tobago, French Guiana and Suriname.

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

 

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