Companies: TLW   

Korea National Oil Company is to pay £220 million for Tullow Oil’s share of the M’Boundi field in Congo (Brazzaville).

This sum will buy fully listed Tullow’s 11 per cent interest in M’Boundi, which is one of Africa’s largest onshore oil fields. ENI, the Italian group that operates the field, expects to increase production from the present 37,000 barrels a day during the year.

Selling M’Boundi will provide more funds for Tullow to develop its prospects in Uganda and Ghana and elsewhere in Africa and Asia. The company, whose overall attributable production rose 13 per cent to an average 73,100 barrels a day last year, said it expected to record a £15 million charge owing to a downgrade of recoverable reserves from the Chinguetti field off the coast of Mauretania.

First recommended by Growth Company Investor at 72p five years ago, Tullow shares hit 682.5p last month, after we suggested partial profit taking at 593.5p. Now 565,5p, down 4.5p this morning, they value the company at £4 billion and should fare better than some sector peers, though they are unlikely to repeat earlier dazzling growth.

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Tullow Oil	LSE	£3561.05m	487.00p	9.50p
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Other company articles:
Exploration Insights by Robert Tyerman			30/06/2008
Ugandan cheer for Tullow			24/06/2008
Ghana gleam for Tullow			06/05/2008
Africa finds cheer Tullow			12/03/2008
China calls the shots			03/03/2008