Tullow Oil dodges restructuring, aims to break free of RBL crunch points

AdobeStock_oil_money_575x375_17Feb2021
By Owen Sanderson, Silas Brown
29 Apr 2021

Tullow Oil is marketing a new $1.8bn senior secured bond to repay its near-term maturities and cancel its reserve-based lending facility entirely, ending the twice yearly cycle of RBL determinations that has pushed some oil explorers close to the edge since the coronavirus pandemic struck.

RBL is the traditional financing product that allows high risk exploration and production (E&P) firms to access cheap debt, essentially by allowing them to secure borrowing on proven reserves.

But these facilities are vulnerable to fluctuations in the oil price, since they are “redetermined” twice a year, adjusting the ...

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