Tullow Oil increases loan facility for exploration in Norway

13th Jun 2014 07:08

Oil explorer Tullow said on Friday that it has increased the size of its loan facility for exploration in Norway.It has refinanced its NOK2bn ($330m) facility ahead of its expiration at the end of 2014 and increased the size of the loan to NOK3bn ($500m), extending the availability to the end of 2017. The new arrangement is a fully committed revolving credit facility and replaces the old one which was arranged for Spring Energy before it was bought by Tullow in January 2013.Chief Financial Officer Ian Springett said that the new funds provide pre-funding for around 75% of Tullow's exploration and appraisal investment on the Norwegian Continental Shelf. "The significant oversubscription demonstrates the strength of our banking relationships and our ability to access debt capital markets. "We remain in an excellent position to fund all our activities across the portfolio with strong liquidity and considerable financial flexibility," he said.BC