Tullow to enhance Dutch portfolio through acquisition of Nuon E&P

24 May 2011 - Tullow Oil plc (Tullow) announces that it has entered into an agreement to acquire Nuon Exploration and Production (Nuon E&P) for a cash consideration of €300 million from the Vattenfall Group.

The acquisition of Nuon E&P will significantly enhance Tullow’s North Sea business adding a portfolio of 25 licences that include over 30 producing fields, numerous development and exploration opportunities and ownership of key infrastructure.

This portfolio will increase the Group’s North Sea gas production by 9,000 boepd to approximately 23,000 boepd and add reserves and resources of 28 mmboe.

The Nuon E&P assets are very complementary to the Group’s existing Dutch assets and will provide a stronger platform for growth in an area that the Group considers has significant potential.

The portfolio includes a number of near term development and exploration opportunities with the potential to sustain and grow production in the short term.

The ownership and access to key infrastructure is an excellent strategic fit with Tullow’s existing exploration acreage in the area.

The Nuon E&P transaction has an effective date of 1 January 2011 and is expected to complete by July 2011.

A map of the assets to be acquired can be accessed at: http://www.tullowoil.com/Nuon_acquisition

Paul McDade, Tullow’s Chief Operating Officer, commented today:

“This acquisition is a natural fit with Tullow’s Southern North Sea portfolio and materially enhances our potential for growth in the Dutch sector, an area with significant opportunities and a stable tax regime. Whilst the scale of the acquisition is modest from a Group perspective, it significantly enhances the value generation potential of our North Sea business.”


The consideration of €300 million will be subject to net working capital and post effective date adjustments.

For the year ended 31 December 2010, Nuon E&P reported a profit on continuing activities before taxation of €16.8 million. As at 31 December 2010, Nuon E&P had gross assets of €520 million.

Tullow is a leading independent oil & gas, exploration and production group, quoted on the London and Irish Stock Exchanges (symbol: TLW) and is a constituent of the FTSE 100 Index.

The Group has interests in over 90 exploration and production licences across 22 countries and focuses on four core areas: Africa, Europe, South Asia and South America.

In Africa, Tullow has production in Ghana, Gabon, Côte d'Ivoire, Mauritania, Congo (Brazzaville) and Equatorial Guinea with two large appraisal and development programmes in Ghana and Uganda.

Tullow also has exploration interests in Gabon, Côte d'Ivoire, Liberia, Sierra Leone, Mauritania, Senegal, Tanzania, Madagascar, Namibia, Kenya and Ethiopia.

Tullow’s European interests are primarily focused on gas in the UK Southern North Sea where it has significant interests in the Caister-Murdoch System and the Thames area.

The company also has interests offshore the Netherlands.

In South Asia, Tullow has exploration and production in Bangladesh and exploration interests in Pakistan.

In South America, Tullow has exploration interests in Guyana, French Guiana and Suriname.