Tullow Focusses on Ghana drilling campaign on Improved Balance Sheet

Tullow Oil is embarking on the next Ghana drilling campaign with the first well having already commenced on one producer using the Noble Venturer at the Jubilee field which is expected to come onstream in the third quarter of 2025. The drilling follows the completion of the 4D seismic survey in first quarter of 2025 to support future well locations and drive reserves growth.

This follows the company renewed financial strength following the deleveraging process through non-core asset disposals including the sale of Tullow’s entire Gabonese portfolio of assets for a total cash consideration of $300 million net of tax and that of its entire working interests in Kenya, for a minimum cash consideration of $120 million.

The group’s Group working interest production in the first quarter of 2025 was 52.9 kboepd, including 7.1 kboepd of gas production remains within the expected range for the period despite a disruption by a two-week planned maintenance shutdown on the Jubilee field. 2025 Group working interest production guidance, prior to Gabon transaction completion also remains 50 to 55 kboepd, including c.6 kboepd of gas.

The group also expects to save c.$10 million identified, reducing annual cash net G&A to c.$40 million, before additional material savings expected as a result of Gabon and Kenya transactions. Full year free cash flow guidance is now $400 million at $65/bbl, inclusive of both $380 million of disposal proceeds and c.$50 million of overdue gas payments in Ghana from 2024, resulting in expected year-end net debt of c.$1.1 billion.

“The strengthening of our balance sheet continues to be the key priority for the team and there is renewed energy within the business following a number of recent key milestones achieved, despite the challenging oil price environment. Our strategy to divest certain non-core assets to accelerate our deleveraging trajectory is progressing well, with the sale of Gabon and Kenya expected to provide near term cash proceeds of $380 million.“