LONDON — Tullow Oil and Capricorn Energy have agreed on an all-share combination of the two E&P companies.
Pending approvals, Capricorn shareholders would own about 47% of the new entity and Tullow shareholders would own about 53%.
Tullow said the combination would create a leading African energy company, listed in London, with resources for near-term growth and reserves additions.
Tullow’s portfolio in Africa includes operatorship of the deepwater Jubilee and TEN fields, licenses in Gabon and Côte d’Ivoire, and onshore development in Kenya. It also operates acreage offshore Guyana containing two oil discoveries.
Tullow added that the combined group, which would be renamed, would have pro forma reserves and resources of 343 MMboe and 696 MMboe, with 2021 production of 96,000 boe/d.
Phuthuma Nhleko, currently chairman of Tullow, will become chair of the board of the combined group, with Tullow CEO Tahul Dhir serving as CEO.
Nicoletta Giadrossi, chair of Capricorn, will be the senior independent director.