The deal, which will see Capricorn chief executive Simon Thomson stand down, will create “a leading African energy company listed in London” with a market value of more than £4.1 billion.

Under the all-share combination, each Capricorn shareholder will receive 3.8068 new Tullow shares. Capricorn shareholders will hold around 47 per cent of the combined group’s shares, while Tullow shareholders will hold around 53 per cent.

The combined group intends to implement a base annual dividend of $60 million, with a capital return policy outlining the criteria for delivering additional shareholder distributions to be announced in due course.

Founded in 1980 as Cairn Energy PLC, Capricorn has focused its work as an oil and gas explorer, developer and producer on South Asia and Africa, becoming a significant player in the region. However, it suffered for some time from a lengthy tax dispute with India which was settled last year.