Tullow Oil (LON:TLW) has been boosted by a deal with the Government of Gabon which sees the oil firm’s licence for the Onal fields confirmed until at least 2034.
The company said it has regained its 7.5% stake in the licence, following negotiations, and it now retains access to Onal as well as the Ezanga Block which hosts oil discoveries. It is agreed that the effective date for the extension is August 1.
It means Tullow can achieve its full year production target of 66,000 to 70,000 barrels of oil per day.
The operations in Gabon contributed some US$162mln of Tullow’s first half revenue, and Onal accounted for about 2,000 barrels of the 15,000 barrels oil equivalent coming from the country.
"I am very pleased that this deal has been agreed which guarantees Tullow's long-term future in Gabon,” said chief executive Aidan Heavey.
“We have had operations in Gabon for over 10 years and I look forward to investing further in Gabon over the coming decades.
“Our West African non-operated portfolio, which has Gabon at its heart, continues to perform exceptionally well, providing important and stable production for the group."
In London - at the same time as the quick rally in crude prices cooled - Tullow shares were down 1.9% trading at 237.5p each.