Tullow Oil said on Monday it had entered into a $400 million five-year debt facility deal with Glencore which would help manage its senior notes maturing through 2026.

The facility, with Glencore Energy UK Ltd, will be available to draw for 18 months and allow Tullow to address all its outstanding 2025 notes and also refinance its 2026 notes, Chief Executive Rahul Dhir said in a statement.

Analysts at Peel Hunt believe the facility “significantly de-risks” Tullow’s ability to refinance its 2026 notes.

“This uncertainty has been a key drag on the share price and we expect the shares to react well to today’s announcement,” the brokerage said.

Tullow’s shares were 3.6% higher at 31.5 pence in early trade.

Tullow Oil trims 2023 output forecast

They have fallen more than 17% so far this year.

The company also signed an oil marketing and offtake contract with Glencore for Tullow’s crude oil entitlements in Ghana and Gabon.