Tullow to sell 20% stake in licence

Tullow Oil, the oil and gas exploration company, has agreed to sell Itochu Corporation a 20% stake in its Republic of Namibia Production Licence No 001 — which contains the Kudu gas field.

To earn the 20% interest, Itochu will pay 40% of the cost of two appraisal wells to investigate the significant upside potential of the Kudu field.

Under the terms of the transaction, Itochu will make further financial payments depending on the ultimate volume of reserves developed.