Tullow to offload Bangladesh asset

Tullow Oil has reached agreement to sell its operations in Bangladesh to Far Eastern exploration firm, KrisEnergy for $42.35 million (€32.4m).

Tullow’s intention to sell its Bangladeshi business has been clear for some time, as the Irish-founded firm looks to dispose of its non-core assets and focus on its African, South American and European-based light oil exploration projects.

This year will see Tullow sell its eight Asian gas licences, which apart from Bangladesh also cover Pakistan; while the halfway point of the year should also see its North Sea gas assets sold.

The company has earmarked 2013 as an important year, with a record year of drilling planned — 49 wells in total, 40 of which are classified as being ‘key’/‘high impact’ targets.

Chief executive Aidan Heavey yesterday said that he was satisfied with the signing of the deal with KrisEnergy; whose other assets are spread across Cambodia, Thailand, Vietnam and Indonesia; hailing 16 years of successful operations in Bangladesh.

“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 the Dutch North Sea,” he added.

Meanwhile, Dublin-headquartered mining company, Kenmare Resources saw its share price hit a three-week high in early trading, yesterday and close up nearly 6%.

The movement was on the back of a first quarter production update showing a 21% quarter-on-quarter increase in heavy mineral concentrate from Kenmare’s Moma titanium mine in Mozambique and an 11.2% rise in ilmenite production.

And Dublin-based IMC Exploration reported positive results from independent studies of its licences near the former Avoca Mine in Co Wicklow, saying they contain “near-mine opportunism” for economic gold and lead-zinc mineralisation.