Under the deal, Faroe will take over running the Ketch and Schooner assets while Tullow will keep a minority stake for the time being.
The firm said it continues to market its remaining gas assets in the Southern North Sea as part of its shift to focus on oil.
“Sales and farm-down processes continue across Tullow and, although transactions are taking longer than initially expected, we are making good progress in tough but improving market conditions,” said Tullow boss Aidan Heavey.
The company stuck to its full-year production guidance of 79,000 to 85,000 barrels per day.
Luke Dods, senior trader at Prime Wealth Group, said the deal means “most of the uncertainty has been removed” around the gas fields, allowing Tullow to focus on its plans to develop its oil discovery in Kenya.
At the company’s annual meeting yesterday, 9.2 per cent of investors who voted refused to back Tullow’s director pay plans.
Tullow shares closed up 1.7 per cent at 880p, while Aim-listed Faroe rose 2.5 per cent to 146p.