TULLOW OIL (LSE:TLW)

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Tullow sells Bangladesh interests

Tullow Oil (TLW) has sold its interests in Bangladesh to KrisEnergy Asia as part of its programme of disposing of non-core assets.

The consideration was $42.35 million (£25.75 million) with an effective date of 1 January 2013.

The sale is conditional upon receipt of approvals and consents from the government of Bangladesh and government-owned national oil company Petrobangla.

Tullow had been in Bangladesh for more than 16 years.

"This follows the announcement of our plans to sell our Asian assets in March 2012," commented chief executive officer Aidan Heavey. "This sale is part of a process of portfolio management and asset monetisation which forms a key part of our exploration-led strategy. This process continues with the proposed sale of gas assets in Pakistan and the UK and Dutch North Sea."

Analyst view

Analysts at FoxDavies attributed the sale to "housekeeping", commenting: "[The news] doesn't really warrant much interest in the context of its wider portfolio, but what is does do is underline the fact that the company has reached the point where it has critical mass, and can now start to high-grade the portfolio.

"We would expect Pakistan to be the next to go so that its focus falls on the North Sea, Latin America and principally Africa," they added.

Dougie Youngson, oil and gas analyst at VSA Capital, added: "The disposal will have little impact on Tullow and we view this announcement as neutral to the share price."