Kosmos Energy ends takeover talks with Tullow Oil  

Kosmos Energy Ltd. has officially announced its decision to end preliminary discussions regarding a possible acquisition of Tullow Oil plc. 

The announcement, made on Tuesday, December 17, 2024, confirms that Kosmos will not be making a firm offer for Tullow at this time, in line with Rule 2.8 of the UK Takeover Code.  

Kosmos’ statement follows initial disclosures on December 12, 2024, when media reports revealed the early-stage discussions surrounding a potential all-share offer for Tullow. Kosmos clarified that it retains the right to revisit this decision under specific circumstances, including Tullow’s board agreeing to set aside the current position, a competing offer emerging from a third party, or a material change in circumstances as determined by the UK Panel on Takeovers and Mergers.  

In its statement, Kosmos reaffirmed its focus as a “full cycle deepwater, independent oil and gas exploration and production company” with key assets across Ghana, Equatorial Guinea, and the U.S. Gulf of Mexico. The company emphasized its commitment to transparency and ethical operations as it continues exploration and production activities along the offshore Atlantic Margins.  

Tullow Oil, in a corresponding statement, acknowledged Kosmos’ decision to terminate the talks, reiterating that the discussions were still at an “early stage and before due diligence had progressed between the parties.” Tullow clarified that the initial confirmation of discussions on December 12 was a result of a media leak.  

Despite the collapse of the preliminary talks, Tullow’s Board expressed confidence in the company’s standalone strategy and future outlook. The statement highlighted Tullow’s continued efforts to optimise its capital structure and address its debt maturities. Additionally, the company provided an update on its ongoing Branch Profits Remittance tax arbitration, stating that the International Chamber of Commerce (ICC) had received a draft decision from the arbitration tribunal. Tullow expects to be notified of the final outcome imminently and assured stakeholders that further updates will be communicated in due course.  

The termination of talks marks the end of speculation around a merger between the two firms, with Kosmos stepping back while Tullow moves forward with its strategic priorities. Both companies remain under scrutiny as industry observers monitor Tullow’s next steps and Kosmos’ pursuit of other opportunities within the oil and gas sector.