Tullow enters into $400m debt facility with Glencore

The facility will be available to draw for 18 months and proceeds will be used for liability management of Tullow's senior notes maturing in March 2025.

The interest on the facility will be term secured overnight financing rate (SOFR) plus 10% on drawn amounts.

Tullow has also entered into oil marketing and offtake contracts with Glencore for its crude oil entitlements from the Jubilee and TEN fields in Ghana and the Rabi Light entitlements in Gabon which run concurrently with the notes facility agreement.

Chief executive Rahul Dhir said the facility with Glencore was "a strong endorsement of our business plan and strategy".

"Today's announcement demonstrates our ability to access long term capital from a variety of sources and this facility is a material step in our refinancing strategy, following the successful and equity accretive tender offer in June," he said.

"The proceeds from this facility, together with cash on balance sheet and $800 million of free cash flow expected to be generated during 2023 to 2025, will allow us to fully address all outstanding 2025 Notes and positions us for a successful refinancing of the 2026 notes."

At 0940 GMT, the shares were up 10% at 33.49p.