Oil exploration in northern Kenya. FILE PHOTO | NMG
Tullow Oil, the successful oil explorer in Turkana, has raised
Sh258 billion ($2.5 billion) in new loans to help fund its Africa’s
operations in 2018.
The firm announced Wednesday the
new cash injection comprises loans at Sh248 billion ($2.4 billion) in a
commercial bank facility and a further Sh10.3 billion ($100 million)
loan from the International Finance Corporation, the World Bank Group’s
private sector lending arm.
The firm, which together
with its partners African Oil Corporation of Canada and Maersk Oil &
Gas of Denmark which has struck in excess of 750 million barrels of oil
in Lokichar basin since February 2012, used its assets to secure the
funds.
“The transaction, which was formally launched in
early October following the resolution of the Ghana - Cote d’Ivoire
border dispute, was materially over-subscribed and extends the maturity
of the Group’s existing RBL credit facilities,” Tullow said in a
statement.
“Tullow has also decided to reduce the
commitments of its Revolving Corporate Credit Facility to $600 million
(Sh62 billion) from $800 million (Sh82.7 billion), ahead of the
scheduled amortisation in January 2018.”
The revolving
facility – meaning its repayments are not fixed unlike in the
installment facility – has a three-year grace period and will mature in
November 2024.
Tullow’s chief financial officer Les
Wood said it would be in a stronger financial position in 2018 because
it has no near-term repayment obligations after it secure the
refinancing deal.
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