United Kingdom oil company Tullow is exiting the Guyana market after poor returns from its efforts in the offshore Orinduik Block but the deal would see financial returns to the company if commercial oil is found in the future.
The company issued a statement that, “Tullow Oil Plc. (“Tullow”) is pleased to announce that it has agreed to sell its total interest in Tullow Guyana B.V. (“TGBV”), which includes the Orinduik licence (Tullow 60% operated equity) in Guyana to Eco Guyana Oil and Gas (Barbados) Limited (“Eco”) (the “Transaction”) in exchange for a combination of upfront cash and contingent consideration.” The company also disclosed that the deal is expected to be finalized in the second half of this year.