Tullow to Default on $2.5bn Debt Repayment

0 167

The Tullow Group has indicated that it may not be able to fully repay its US$2.5 billion notes outstanding which will mature in 2025 and 2026.

This is because the group’s Corporate Business Plan does not project sufficient free cash flow generation to allow it fully repay these notes when they fall due.

The report pointed out that a failure to grow the business via targeted investment in existing fields and/or investment in new fields could ultimately impact its ability to deliver the Business Plan and meet longer-term production targets.

“Tullow remains exposed to erosion of its balance sheet and revenues due to oil price volatility, unexpected operational incidents, cost inflation and failure to deliver targeted farm downs of exploration assets and Kenya.

Graphic Business

Leave A Reply