Finance
Tullow Oil strikes multiple deals in sweeping capital overhaul
Published by Global Banking & Finance Review®
Posted on February 20, 2026
2 min readLast updated: February 20, 2026
Quick Summary
Tullow Oil secured a lock‑up with Glencore and two‑thirds of noteholders to extend debt to Nov 2028. Ghana ratified Jubilee and TEN license extensions to 2040. Tullow will buy the TEN FPSO for $205m to reduce costs.
Tullow Oil Seals Multiple Deals in Broad Capital Restructuring
Refinancing with Glencore and Noteholders
Tullow Oil’s Capital Overhaul and Ghana Agreements
Feb 20 (Reuters) - London-listed, West Africa-focused oil and gas company Tullow Oil has entered refinancing deals with Glencore and owners of about two-thirds of its $1.3 billion senior secured notes, extending debt maturities by over two years to November 2028.
Ghana License Extensions: WCTP and DWT
The company has also struck a deal with the Ghana government for the extension of its West Cape Three Points and Deep Water Tano Petroleum agreements, it said on Friday.
Alignment to 2026 Catalysts and Reserves
The company said the refinancing deal stabilises its capital structure and aligns it with expected 2026 operational catalysts and potential reserve additions, easing pressures on one of London's most debt-laden independent oil producers.
CEO Targets Fixed Cost Cuts
TEN FPSO Purchase for $205 Million
Tullow also agreed to buy the Floating Production, Storage, and Offloading vessel serving Ghana’s TEN oilfields for $205 million, signing a deal that its CEO said will cut fixed costs and boost long‑term cash flow.
Operational Streamlining amid Debt and Receivables
The deals come as a part of the company's efforts to streamline operations across its West African portfolio as it seeks to refinance its capital amid mounting debt and delayed payments from Ghana’s government.
(Reporting by Sri Hari N S and Ankita Bora in Bengaluru; Editing by Mrigank Dhaniwala)
Key Takeaways
- •Tullow struck a lock‑up with Glencore and ~66% of holders of its $1.285bn senior secured notes.
- •Maturities on the extended notes move to Nov 15, 2028; Glencore junior notes run to May 15, 2030.
- •Ghana ratified extensions of the WCTP and Deep Water Tano agreements to Dec 31, 2040.
- •GNPC’s interest rises by 10% from July 20, 2036; revised gas terms and payment security agreed.
- •Tullow will buy the TEN FPSO for $205m (c.$125.6m net) to cut fixed costs and boost cash flow by 2027.
Frequently Asked Questions about Tullow Oil strikes multiple deals in sweeping capital overhaul
1What is the main topic?
Tullow Oil’s capital overhaul, including a lock‑up with Glencore and major noteholders to extend debt maturities, Ghana license extensions to 2040, and the planned purchase of the TEN FPSO.
2How far were Tullow’s debt maturities extended?
The company agreed to exchange and extend its senior secured notes to November 15, 2028, easing near‑term refinancing risk and stabilizing its capital structure.
3What did Tullow agree with the Ghanaian government?
Parliament ratified extensions of the West Cape Three Points and Deep Water Tano petroleum agreements to December 31, 2040, with GNPC’s stake rising by 10% from July 20, 2036.
