Kosmos Energy Ltd. (“Kosmos”) has officially announced that it will not proceed with a formal offer for Tullow Oil plc (“Tullow”) at this time, without specifying any reason for the decision effectively ending early-stage discussions between the two companies.
This decision, which comes under the purview of Rule 2.8 of the UK Takeover Code (the “Code”), reflects the complex dynamics at play in the oil and gas sector amid evolving financial conditions and strategic considerations.
“This is a statement to which Rule 2.8 of the Code applies.
“As is customary, Kosmos reserves the right to set aside this statement in the following circumstances that are described under Note 2 to Rule 2.8 of the Code.”
Kosmos Energy Ltd.
The announcement follows Tullow’s earlier confirmation on December 13, 2024, that the discussions, sparked by a possible all-share offer from Kosmos, were still in their infancy and had been prematurely exposed due to a media leak.
Kosmos’ withdrawal indicates that the preliminary talks have not progressed to the point of concrete commitment, leaving both parties to navigate their respective strategic paths independently for the time being.
Under Rule 2.8 of the UK Takeover Code, when a company declares that it does not intend to make a firm offer, it is subsequently restricted from doing so for a period of six months.
However, Kosmos has reserved the right to set aside this statement under specific circumstances, as permitted under Note 2 to Rule 2.8 of the Code.
In its statement Kosmos revealed these conditions which include, “The Board of Tullow agreeing to a renewed proposal, a third-party firm intention to make an offer for Tullow, a reverse takeover, or a determination by the UK Panel on Takeovers and Mergers that there has been a material change of circumstances.”
These conditions ensure that while Kosmos cannot currently proceed with an offer, opportunities for revisiting the acquisition remain open should the situation evolve.
Tullow’s Response and Strategic Position

In response to Kosmos’ announcement, Tullow’s Board reiterated its confidence in the company’s standalone business strategy.
Despite the failure to progress discussions, Tullow remains focused on optimizing its capital structure and addressing its outstanding debt obligations. This includes the resolution of its ongoing Branch Profits Remittance tax arbitration.
“The Board remains confident in Tullow’s standalone business.
“Tullow is well positioned to optimise its capital structure and continues to progress plans to address its remaining debt maturities, following receipt of the outcome on the Branch Profits Remittance tax arbitration.”
Tullow Oil
The International Chamber of Commerce (ICC) has confirmed that it has received the draft decision from the arbitration tribunal and is currently undergoing its final review.
The result of this arbitration could play a pivotal role in bolstering Tullow’s financial standing and providing much-needed clarity for investors.
For Tullow, the timing of Kosmos’ withdrawal could be seen as an opportunity to refocus on internal strategies without the distraction of external takeover discussions.
The news of Kosmos Energy’s withdrawal has been met with mixed reactions in financial and energy markets.
Had the deal gone through, the combined company could have produced more than 130,000 barrels of oil equivalent per day (boepd), based on the two companies’ 2024 forecast, spanning Mauritania, Senegal, Ghana and Equatorial Guinea on Africa’s western coast as well as the U.S. Gulf of Mexico.
“There was logic to considering a transaction given the shared assets in Ghana and scope for operational synergies,” said James Hosie, research analyst at Shore Capital Stockbrokers.
“But any transaction would have required the support of the Ghanaian government and the creditors of both companies, which may have been challenging.
“I felt it [the potential deal] was somewhat opportunistic … coming soon after the news of Tullow’s search for a new CEO.”
James Hosie, research analyst at Shore Capital Stockbrokers
Kosmos Energy’s decision not to proceed with a firm offer for Tullow Oil represents a temporary halt in what could have been a significant consolidation within the oil and gas sector.
While preliminary discussions have ended, both companies remain well-positioned to explore new opportunities, whether through organic growth or strategic partnerships.
As the industry continues to evolve, investors and stakeholders will be watching closely to see how Tullow and Kosmos chart their paths forward.
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