Audio By Carbonatix
Tullow Oil will acquire Capricorn Energy in an all-stock deal worth 656.9 million pounds ($826.7 million), keeping a focus on African reserves amid soaring energy prices.
Investors in Capricorn, formerly known as Cairn Energy, will receive 3.8068 Tullow shares for each share they hold, the companies said on Wednesday. Reuters calculated the value.
"The combination represents a unique opportunity to create a leading African energy company, listed in London, with the financial flexibility and human resource capability to access and accelerate near-term organic growth," the companies said.
The Russia-Ukraine war has sent crude oil and gas prices higher as sanctions on Moscow squeeze supplies.
The combined group, to be led by Tullow boss Rahul Dhir and majority-owned by the West Africa-focused firm, is expected to have an output of 96,000 barrels of oil equivalent per day, with pro forma reserves of 343 million barrels of oil equivalent.
Tullow's flagship offshore oilfields in Ghana will make up the biggest share of the new group's reserves and production, three- quarters of which will be oil and one-quarter gas.
The larger company, which is expected to have a new name, will have production across Africa, including Egypt, Gabon, and Ivory Coast.
The merger will offer annual savings of $50 million and investors in the new group will get an annual dividend of $60 million, ending a payout drought for Tullow shareholders.
Shares in Tullow, which last closed at a price of 54.60 pence each, reversed initial losses to trade about 0.6% higher by 0759 GMT. Capricorn Energy shares were up 0.7%. The wider oil and gas index fell 0.6%.
Morgan Stanley and Rothschild & Co were Capricorn's financial advisers, while PJT Partners and Barclays advised Tullow. The boards of both energy companies backed the deal.
Separately, energy services provider Wood Plc WG.L agreed to sell its consulting unit for $1.9 billion.
Latest Stories
-
Synthetic drugs pose growing challenge to Ghana’s anti-drug fight – Muntaka
5 minutes -
A tribute to Dr. Isaac Bampoe Addo
6 minutes -
Ghana removed 2,281 migrant beggars, 774 illegal immigrants in 2025 – Interior Minister
7 minutes -
Gov’t traces 73 assets linked to suspected drug trafficking networks – Muntaka
8 minutes -
Over 8,500kg of narcotics seized in 20 months – Muntaka
11 minutes -
Asantehene to tee off Millennium Excellence Week in Washington DC
11 minutes -
June 29 floods killed 39, affected nearly 92,000 people – Muntaka
14 minutes -
Barosky stranded on Manchester streets, appeals for help to return to GhanaÂ
15 minutes -
UAE bought $1m worth of flood relief items locally for June 29 victims – Muntaka
16 minutes -
2026 LCB Corporate Games underway with 16 port and logistics firms
20 minutes -
Government freezes GH¢6.9m and $440,000 linked to suspected drug trafficking
21 minutes -
217 arrested, 165 prosecutions initiated in drug crackdown – Interior Minister
23 minutes -
CDD-Ghana calls for new law to regulate political party financing, campaign spending
26 minutes -
NPP supporters throng party headquarters as Justin Kodua and others file nominations
28 minutes -
GoldBod gains: This is not what Ghanaians voted for, deal with galamsey – Prof. Bokpin
30 minutes