Tullow Oil CEO: "We will be able to repay the debt"


February 10, 2021
Rahul Dhir, Chief Executive Officer-designate of Tullow Oil / Image Credit: Tullow Oil

Rahul Dhir, Chief Executive Officer-designate of Tullow Oil / Image Credit: Tullow Oil

Tullow Oil CEO Rahul Dhir said on Wednesday he expected talks with creditors, including bondholders, to end in the second quarter with a focus on matching maturities with expected cashflows.

Tullow had a market capitalization of around $596 million on Wednesday and net debt of $2.4 billion and has revamped its business plan to focus on squeezing its offshore fields in Ghana, shedding some of its other assets.

"We will be able to repay the debt and we have line of sight to say how do you get to $1-$1.5 billion (debt) and importantly to be in the 1 to 2 (times) net debt to EBITDA range," Dhir said referring to core earnings, adding this applied at an oil price of $55 a barrel.

"The discussions from our perspective really are about matching debt maturities to the timing of cashflow. That's the problem we're trying to solve," Dhir told a conference call.

Beyond talks with bondholders, Tullow is also in talks with banks about a covenant test for its reserve-based lending debt facility which were extended by about a month until the end of February. 

(Reporting by Shadia Nasralla; editing by Edmund Blair and Jason Neely)

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