Tullow Oil Announces The Acquisition Of Capricorn Energy To Expand Into Africa
Tullow Oil Announces The Acquisition Of Capricorn Energy To Expand Into Africa. Tullow Oil has announced that it has acquired Capricorn Energy in order to create a company that will focus on African expansion.
Rahul Dhir, Chief Executive Officer of Tullow Oil PLC said in a statement, “Our company now has solid financial and operational foundations with a well-defined opportunity set to drive growth and create value. With new leadership at the Board, we are now well-placed to build on these firm foundations to achieve our ambitions in the African oil and gas sector and fulfil our purpose of building a better future through responsible oil and gas development. We will do this by successfully executing our long-term business plan which will grow production and generate substantial cash flows to create value for all our stakeholders.”
“The rest of the portfolio is also well positioned to create value. We expect to sustain production in our non-operated assets and we are seeking to farm down some of our equity in Kenya to a strategic partner. We are making good progress with this farm down and we continue to work closely with the Ministry of Petroleum and Mines to secure FDP approval. We believe that Project Oil Kenya can generate material, long-term value which will complement our portfolio in West Africa and diversify our business.” Dhir added.
Tullow Oil is an independent oil and gas exploration and production company. The Group has interests in over 30 exploration and production licences across eight countries. The Boards of Tullow and Capricorn believe that this merger has compelling strategic, operational and financial rationale, with the ability to deliver substantial benefits to shareholders, host nations and other stakeholders. The merger represents a unique opportunity for the company to create a leading African energy company, listed in London, with the financial flexibility and human resource capability to access and accelerate near-term organic growth, add new reserves and resources cost-effectively, generate significant future returns for shareholders, and pursue further consolidation.
