- Oil company Tullow Oil said $1.9bn of company debt capacity had been approved by its lending syndicate as part of a regular review of its finances.

The company said that the redetermination of its reserves based lending (RBL) facility meant it had around $700m liquidity headroom of undrawn facilities and free cash at the start of the second quarter.

Tullow Oil shares have recently been hammered by a sharp reduction in the oil price, even though it has hedged a portion of its price exposure.

The company said its production operations in West Africa had not been affected by Covid-19 as yet.

'Securing the ongoing support of our RBL lending banks and confirming our debt capacity has been important given the current challenging environment,' chief financial officer Les Wood said.

'Today's positive news verifies the strength of our producing assets and robust hedging strategy which underpin the RBL and, combined with the further cost savings we have identified, confirms the strength of our liquidity in the medium-term.'

'Nevertheless, strengthening the balance sheet continues to be a key priority with the group seeking to raise proceeds in excess of $1bn through portfolio management.'

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