Tullow Oil plc (Tullow) is pleased to announce the following update on its financing and banking arrangements. Tullow and its lending banks have:
•completed the six-monthly Reserve Based Lend (RBL) redetermination process; the quality of our asset portfolio supported a US$200 million increase in lenders commitments, increasing available debt capacity from US$3.5 billion to US$3.7 billion, despite lower oil prices;
•arranged an additional US$250 million of lenders commitments, secured through the corporate credit facility which has been increased from US$750 million to US$ 1 billion; and
•agreed an amendment to the financial covenant on the RBL and corporate facility to address the risk of any potential covenant breach during a period of oil price volatility and investment in production and development assets in West Africa.
As a result, the Group has around US$6.3 billion of currently committed debt facilities with no near term maturities.