Table of Contents
Key Points
- Tullow Oil sells Gabon assets to government for $302 million, marking Gabon's shift towards greater control of its oil industry.
- The sale marks a turning point for Samuel Dossou-Aworet’s influence in Gabon’s oil sector as foreign dominance recedes.
- Tullow faces $213 million in exploration write-offs, including $145.4 million from Kenya, as it reshapes its portfolio and focuses on debt reduction.
Tullow Oil Plc, the London-listed oil and gas explorer in which Gabonese-Beninese oil magnate Samuel Dossou-Aworet holds a significant stake, has sold its Gabonese oil assets to the Gabonese government for FCFA181 billion ($302 million). The sale includes Tullow Oil Gabon SA, which holds 100 percent of Tullow’s working interests in Gabon. The $300 million deal marks a key shift toward greater control over the country’s energy resources.
This transaction, between Tullow Oil and the Gabonese government through the Gabon Oil Company (GOC), goes beyond a simple commercial exchange. It signals Gabon's first major step in decades to regain control of its oil industry, ending a long period of foreign dominance. The sale also represents a turning point for Samuel Dossou-Aworet, once the central figure in Gabon’s oil circles.
His influence in Gabon’s energy sector is waning, particularly after Petrolin Group, through a consortium called Renaissance Africa Energy Holdings, which includes Aradel Holdings, ND Western, FIRST Exploration and Petroleum Development Company, and Waltersmith Group, acquired Shell Petroleum Development Company of Nigeria (SPDC). For Tullow Oil, this deal aligns with its strategy to cut down on debt, as outlined in its January Trading Statement and Operational Update, while also divesting from non-core assets.
Gabon Oil deal boosts national control
Richard Miller, Chief Financial Officer and Interim CEO of Tullow, remarked on the deal: “This transaction with Gabon Oil Company supports our priority to accelerate deleveraging, playing a crucial part in our refinancing efforts this year. Alongside GOC, we are working to finalize all documentation and ensure a smooth conclusion. With our strengthened balance sheet and planned activities at Jubilee, we are well-positioned for the future.”
A senior Ministry of Oil official, speaking anonymously, commented: “This is a powerful message. Gabon is regaining control of its resources and breaking free from some foreign influence networks.” This shift could lead to a new era of governance, one that is more transparent and focused on the national interest. However, economist François Ella cautioned, “Owning the assets is just the beginning. Managing and making them profitable for the people of Gabon remains the true challenge.”
The $300 million purchase will allow Gabon to ramp up its oil production from 12,000 to 82,000 barrels per day, according to figures from Transition President Brice Clotaire Oligui Nguema. This increase not only strengthens GOC’s position but also marks a step toward reducing the foreign influence that has historically shaped Gabon’s oil revenue. Samuel Dossou-Aworet, a former advisor to President Omar Bongo and leader of Petrolin Group, has long been a dominant figure in Gabon’s oil sector. For over three decades, he helped create an environment where private interests often took precedence over national goals.
Tullow Oil faces $213 million write-offs
Tullow Oil remains active across Africa, focusing on producing oil fields in Ghana, Gabon, and Côte d'Ivoire, alongside its operations in Kenya. Samuel Dossou-Aworet’s 16.8 percent stake in Tullow Oil, worth $50 million as of September 2024, has dropped significantly from $86 million in 2024. Tullow’s financial challenges continue to mount, as the company wrote off $145.4 million in 2024 from its Kenyan assets due to doubts over the long-delayed Turkana oil project. This impairment brought the value of its Kenyan assets down to $112.2 million, down from $253.3 million at the end of 2023.
Tullow Oil also recorded a total of $213 million in exploration write-offs in 2024, a significant jump from $27 million the previous year. The largest portion of this write-off was related to its Kenyan assets, where the extension of the Final Development Plan (FDP) review deadline to June 2025 prompted a reassessment of the project's risks. Other write-offs included $39 million in Argentina, $16 million in Côte d'Ivoire, and $10 million related to the Sarafina well in Gabon.
