Tullow eyes more cuts as it wraps up loan facility

摘要

LONDON-LISTED Tullow Oil has completed a redetermination of its reserves based lending (RBL) facility and had identified further cost savings.Completion of a biannual redetermination of its RBL credit facility with $1.9 billion of debt capacity has been approved by the company lending syndicate.This leaves Tullow with about $700 million of undrawn facilities and free cash at the start of the second quarter of 2020, a level its board said is "appropriate" given its much-reduced capital spending footprint for the coming year.Tullow - headed by chair Dorothy Thompson - late last week said it has voluntarily reduced facility commitments from $2.4 billion to about $2.2 billion, which accelerates the first scheduled commitment amortisation from October 2020.This reduction in debt capacity and commitments, it said, will result in a reduction of finance costs.