Tullow Oil Sells M’Boundi Field Interest to Korea National Oil

UK-based exploration and production firm Tullow Oil has announced the sale of its 11% interest in the onshore M’Boundi field in the Republic of Congo to Korea National Oil Company for a total cash consideration of $435 million.

The deal, which will involve the sale of Tullow’s subsidiary company Tullow Congo, is subject to partner pre-emption and approval from the government of the Republic of Congo.

The M’Boundi field was discovered in May 2001 by French drilling and exploration firm Maurel and Prom. It is reportedly one of the largest oil fields to be discovered onshore Africa.

Through an active program of water injection and production optimization initiated by the operator Eni, current production of approximately 37,000 barrels of oil per day is expected to increase during 2008.

The M’Boundi field has been an important asset in Tullow’s portfolio since its acquisition of Energy Africa in 2004. In the intervening period, the field has made a significant contribution to the group’s organic production and reserves growth, the company said.

Tullow said that this transaction provides it with the financial flexibility to advance its appraisal and development programs in Ghana and Uganda.