Tullow strikes deal to offload £27m of assets

Kasmira Jefford
Follow Kasmira
TULLOW Oil, the FTSE oil and gas explorer, revealed yesterday it has agreed to sell its assets in Bangladesh to Singaporean company KrisEnergy Asia for $42.35m (£27.2m).

Under the terms of the deal, KrisEnergy will take over Tullow’s 30 per cent stake in Block 9, which includes the Bangora gas producing facility and the Lalmai discovery.

Canada’s Niko Resources will continue to hold a 60 per cent interest in the block, while the remaining 10 per cent is held by state-run Bangladesh Petroleum Exploration & Production Company.

Last year gross production from the Bangora field averaged about 100m cubic feet of gas per day and 300 barrels of condensate per day.

Aidan Heavey, Tullow’s chief executive, said: “This sale is part of a process of portfolio management and asset monetisation which forms a key part of our exploration-led strategy.”

The news follows plans announced last year to sell its Asian assets as well as its gas assets in the UK and Dutch Southern North Sea.