Kosmos in early talks for Tullow Oil takeover

Kosmos Energy is in early talks for an all-share acquisition of Tullow Oil, aiming to create a major West Africa-focused oil producer. The merger of the two indebted firms is part of a broader energy industry consolidation trend, as companies seek to increase scale and reduce costs.

The combined company would produce over 130,000 barrels of oil equivalent per day, with operations in Mauritania, Senegal, Ghana, Equatorial Guinea, and the U.S. Gulf of Mexico.

Tullow, once valued at nearly $22 billion, now has a market capitalization of $480 million and faces significant debt.

Kosmos, with a market cap of $1.5 billion, is better positioned financially. Analysts view the deal favorably, given their shared assets and Kosmos’ stronger balance sheet.