{"id":11994,"date":"2022-03-09T09:10:18","date_gmt":"2022-03-09T09:10:18","guid":{"rendered":"https:\/\/www.oilnewskenya.com\/?p=11994"},"modified":"2022-03-09T09:10:18","modified_gmt":"2022-03-09T09:10:18","slug":"tullow-oil-announces-its-full-year-results-for-the-year-ended-31-december-2021","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/tullow-oil-announces-its-full-year-results-for-the-year-ended-31-december-2021\/","title":{"rendered":"Tullow Oil Announces its Full Year Results for the year ended 31 December 2021"},"content":{"rendered":"<p>Rahul Dhir, Chief Executive Officer, Tullow Oil plc, commented today: \u201cFollowing a transformational 2021, in which Tullow successfully refinanced its balance sheet, drilled highly productive wells in Ghana and demonstrated operational excellence and financial discipline across the Group, we are now concentrating on the successful delivery of our long-term business plan. This year will see a great deal of activity at our flagship Jubilee field with investment in new infrastructure and new wells to grow production in the near term and we are taking on the operation and maintenance of the FPSO. At TEN, we will drill two important, strategic wells that will help define our future plans for the fields and we will continue to build production in Gabon. I also expect us to make tangible progress towards our ambitious target of achieving Net Zero by 2030. With additional opportunities to deliver value across our portfolio, including gas commercialisation in Ghana, our revised Kenya development project and an exciting well in a proven play in Guyana, we are well-placed to deliver value from our assets and to grow our business.\u201d<\/p>\n<p>2021 FULL YEAR RESULTS SUMMARY<\/p>\n<ul>\n<li>Revenue of $1,273 million; gross profit of $634 million; loss after tax of $81 million primarily driven by exploration costs written off, impairments, restructuring costs and other provisions.<\/li>\n<li>Underlying operating cash flow1 of $711 million and free cash flow1 of $245 million.<\/li>\n<li>Capital and decommissioning expenditure of $263 million1 and $69 million respectively.<\/li>\n<li>Net debt at year-end of $2.1 billion; gearing of 2.2&#215;1 net debt\/EBITDAX; liquidity headroom of $0.9 billion.<\/li>\n<li>Group working interest production averaged 59.2 kboepd, in line with guidance with notable production growth from Jubilee in Ghana and Simba in Gabon, but lower production than expected from TEN and Espoir.<\/li>\n<li>In Ghana, strong performance delivered across key operational areas of FPSO uptime, water injection and gas processing. Drilling recommenced in April, with four wells and a workover successfully completed, ahead of plan.<\/li>\n<li>Commitment made to becoming Net Zero on Scope 1 and 2 emissions by 2030 and to eliminate routine flaring in Ghana by 2025.<\/li>\n<li>Received $133 million from divestment of non-core interests in Equatorial Guinea and the Dussafu Marin Permit in Gabon.<\/li>\n<li>Comprehensive debt refinancing completed in May, with new $1.8 billion five-year Senior Secured Notes; a new undrawn $500 million revolving credit facility provides strong liquidity headroom.<\/li>\n<li>Continued focus on costs helped achieve c.25% year-on-year reduction in administrative expenses to $64 million; operating costs reduced to $269 million (2020: $332 million), driven by lower facilities operations and maintenance costs in Ghana, as well as asset disposals.<\/li>\n<li>Phuthuma Nhleko appointed Chair of Tullow, succeeding Dorothy Thompson who stepped down on 31 December 2021<\/li>\n<\/ul>\n<p>2022 OUTLOOK<\/p>\n<ul>\n<li>Group working interest oil production guidance remains 55 to 61 kboepd based on Tullow\u2019s existing equity interests in TEN and Jubilee.<br \/>\nThis forecast will be adjusted following completion of the pre-emption of the sale of Occidental Petroleum\u2019s interest in Ghana to Kosmos Energy. The estimated full year impact of the completed pre-emption would be an addition of c.5 kboepd (net) to the Group\u2019s 2022 production forecast, adjusted for completion timing.<br \/>\n\u00b7 Full-year underlying operating cash flow guidance remains c.$750 million, assuming $75\/bbl for the remainder of the year.<br \/>\n\u00b7 Full-year free cash flow guidance remains c.$100 million assuming $75\/bbl for the remainder of the year; year-to-date cash flow positively impacted by oil prices at the start of the year, largely offsetting the one-off impact of a $76 million payment to HiTec Vision in relation to the purchase of Spring Energy in 2013, following an arbitral decision in HiTec Vision\u2019s favour. Material cash flow contribution secured in February with receipt of $75 million contingent consideration following Final Investment Decision (FID) in Uganda.<\/li>\n<li>Capex of c.$350 million, split c.$270 million in Ghana, c.$30 million for non-operated portfolio, c.$5 million in Kenya, and exploration spend of c.$45 million. Decommissioning spend is expected to be c.$100 million.<\/li>\n<li>Three new wells at Jubilee and three new wells at the TEN fields planned, including two strategic wells at TEN to further define future development plans, as well as investment in infrastructure for the undeveloped Jubilee South East and North East areas.<\/li>\n<li>Tullow will self-operate the Jubilee FPSO from mid-2022 onwards, following the scheduled end of the contract with MODEC, enabling the Group to realise further efficiency improvements and cost savings.<\/li>\n<li>Tullow expects to secure a gas commercialisation agreement in Ghana which will come into effect once all foundation gas volumes have been delivered; this is forecast to occur before year-end.<\/li>\n<li>In Kenya, a revised Field Development Plan was submitted in late 2021 and discussions are progressing with potential strategic partners.<\/li>\n<li>Work plan in place to progress towards Net Zero target, focusing on gas compression facilities on the Jubilee FPSO; MOU signed with the Ghana Forestry Commission to identify and develop nature-based carbon offset projects in Ghana to offset hard to abate and residual emissions.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Rahul Dhir, Chief Executive Officer, Tullow Oil plc, commented today: \u201cFollowing a transformational 2021, in which Tullow successfully refinanced its balance sheet, drilled highly productive wells in Ghana and demonstrated &hellip; <a href=\"https:\/\/www.oilnewskenya.com\/index.php\/tullow-oil-announces-its-full-year-results-for-the-year-ended-31-december-2021\/\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":24,"featured_media":8939,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[7442,7443,11,7444],"tags":[9015,789,4064,944,997,9771,1252,2778,8746,7162,9198,2571,2603],"class_list":["post-11994","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-countries","category-eastern-africa","category-top-news","category-west-africa","tag-dussafu-marin-permit","tag-equatorial-guinea","tag-fid","tag-gabon","tag-ghana","tag-jubilee-fpso","tag-kenya","tag-kosmos-energy","tag-modec","tag-occidental-petroleum","tag-ten-field","tag-tullow-oil","tag-uganda","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/08\/Tullow-Oil.jpg?fit=699%2C466&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-37s","jetpack-related-posts":[{"id":11164,"url":"https:\/\/www.oilnewskenya.com\/index.php\/ghana-tullow-oil-provides-jubilee-ten-fieldsupdate\/","url_meta":{"origin":11994,"position":0},"title":"GHANA: Tullow Oil Provides Jubilee, Ten fieldsUpdate","author":"","date":"November 18, 2021","format":false,"excerpt":"Ghana drilling campaign on track, with three of the four wells planned in 2021 now onstream. Significant improvement in operating performance sustained: combined uptime on both FPSOs is averaging c.97%; gas offtake from the Government of Ghana is averaging c.110 mmscfd; water injection rates on Jubilee are in excess of\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2019\/02\/Tullow-Oil.jpg?fit=713%2C476&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2019\/02\/Tullow-Oil.jpg?fit=713%2C476&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2019\/02\/Tullow-Oil.jpg?fit=713%2C476&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2019\/02\/Tullow-Oil.jpg?fit=713%2C476&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":11632,"url":"https:\/\/www.oilnewskenya.com\/index.php\/ghana-tullow-oil-contracts-navy-to-provide-security-to-jubilee-ten-fields\/","url_meta":{"origin":11994,"position":1},"title":"Ghana: Tullow Oil Contracts Navy to Provide Security to Jubilee &#038; Ten Fields","author":"","date":"January 17, 2022","format":false,"excerpt":"Tullow Ghana and the Ghana Navy have signed a Memorandum of Understanding for the contracting of Ghanaian Navy vessels worth $23.5million-dollars to provide security services in the Jubilee and TEN oil fields over the next five(5) years. Speaking at the signing ceremony, Deputy Managing Director of Tullow Ghana, Cynthia Lumor\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2022\/01\/Tullow-Ghana-Navy.jpg?fit=1024%2C682&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2022\/01\/Tullow-Ghana-Navy.jpg?fit=1024%2C682&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2022\/01\/Tullow-Ghana-Navy.jpg?fit=1024%2C682&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2022\/01\/Tullow-Ghana-Navy.jpg?fit=1024%2C682&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":12408,"url":"https:\/\/www.oilnewskenya.com\/index.php\/ghana-petrofac-selected-by-tullow-oil-to-provide-operations-tullows-jubilee-award\/","url_meta":{"origin":11994,"position":2},"title":"GHANA: Petrofac Selected by Tullow Oil to Provide Operations at Jubilee","author":"","date":"July 5, 2022","format":false,"excerpt":"Petrofac\u2019s role on the Jubilee Development in Ghana \u2013 one of the largest oil fields discovered offshore West Africa in 20 years \u2013 includes the provision of operations, maintenance and technical support services for Tullow Oil\u2019s Kwame Nkrumah (KNK) Floating Production Storage and Offloading (FPSO) vessel. Nick Shorten, Chief Operating\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2022\/07\/Petrofac.jpg?fit=1050%2C700&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2022\/07\/Petrofac.jpg?fit=1050%2C700&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2022\/07\/Petrofac.jpg?fit=1050%2C700&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2022\/07\/Petrofac.jpg?fit=1050%2C700&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2022\/07\/Petrofac.jpg?fit=1050%2C700&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":12436,"url":"https:\/\/www.oilnewskenya.com\/index.php\/tullow-oil-provides-july-trading-statement-operational-update\/","url_meta":{"origin":11994,"position":3},"title":"Tullow Oil Provides July Trading Statement &#038; Operational Update","author":"","date":"July 13, 2022","format":false,"excerpt":"Rahul Dhir, Chief Executive Officer, Tullow Oil plc, commented today: \u201cIt is two years since I joined Tullow and today, we are in a very different place. A relentless focus on costs, capital discipline and operating performance is ensuring delivery of our business plan. We have also added unhedged production\u2026","rel":"","context":"In &quot;Central Africa&quot;","block_context":{"text":"Central Africa","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/central-africa\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2019\/02\/Tullow-Oil.jpg?fit=713%2C476&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2019\/02\/Tullow-Oil.jpg?fit=713%2C476&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2019\/02\/Tullow-Oil.jpg?fit=713%2C476&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2019\/02\/Tullow-Oil.jpg?fit=713%2C476&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":11706,"url":"https:\/\/www.oilnewskenya.com\/index.php\/tullow-oil-to-concentrate-on-it-producing-assets-in-2022\/","url_meta":{"origin":11994,"position":4},"title":"Tullow Oil to Concentrate on it Producing Assets in 2022","author":"","date":"January 26, 2022","format":false,"excerpt":"2022 Outlook Group working interest oil production guidance is 55 to 61 kboepd. This forecast is based on Tullow\u2019s existing equity interests in TEN (47.175%) and Jubilee (35.48%) and will be adjusted following completion of the pre-emption of the sale of Occidental Petroleum\u2019s interest in Ghana to Kosmos Energy. The\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/08\/Tullow-Oil.jpg?fit=699%2C466&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/08\/Tullow-Oil.jpg?fit=699%2C466&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/08\/Tullow-Oil.jpg?fit=699%2C466&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":12829,"url":"https:\/\/www.oilnewskenya.com\/index.php\/tullow-oil-november-trading-statement-operational-update\/","url_meta":{"origin":11994,"position":5},"title":"Tullow Oil November Trading Statement &#038; Operational Update","author":"","date":"November 16, 2022","format":false,"excerpt":"OPERATIONAL UPDATE Production Group net working interest production averaged c.61.8 kboepd to end October 2022, in line with guidance. Full year production guidance for 2022 narrowed from 60-64 kbopd to 61-62 kbopd. Group average working interest production FY 2022 guidance (kboepd) Ghana 45 \u00a0\u00a0\u00a0\u00a0Jubilee 32 \u00a0\u00a0\u00a0\u00a0TEN 13 Non-operated portfolio 17\u2026","rel":"","context":"In &quot;Central Africa&quot;","block_context":{"text":"Central Africa","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/central-africa\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2019\/02\/Tullow-Oil.jpg?fit=713%2C476&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2019\/02\/Tullow-Oil.jpg?fit=713%2C476&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2019\/02\/Tullow-Oil.jpg?fit=713%2C476&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2019\/02\/Tullow-Oil.jpg?fit=713%2C476&ssl=1&resize=700%2C400 2x"},"classes":[]}],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/11994","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/comments?post=11994"}],"version-history":[{"count":1,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/11994\/revisions"}],"predecessor-version":[{"id":11995,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/11994\/revisions\/11995"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media\/8939"}],"wp:attachment":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media?parent=11994"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/categories?post=11994"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/tags?post=11994"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}