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Feb. 26, 2021, 2:44 a.m. EST

Tullow Oil to reduce its debt capacity amount

By Matteo Castia

Tullow Oil PLC said Friday that it has agreed with its technical banks to reduce its debt capacity amount under its existing reserves-based lending facility to $1.7 billion from $1.8 billion.

The London-listed energy company said the reduction reflects the effects of six months of production and the removal of the Equatorial Guinea and Dussafu assets as a result of their sale to Panoro Energy ASA.

The reserves-based lending facility forms part of Tullow's business plan review.

"This plan is expected to generate material cash flow, which will enable reduction of the group's current debt levels and creates the foundation to address near-term debt maturities," the company said.

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