Tullow Oil CEO Issues Statement Ahead of AGM

Our company now has solid financial and operational foundations with a well-defined opportunity set to drive growth and create value. With new leadership at the Board, we are now well-placed to build on these firm foundations to achieve our ambitions in the African oil and gas sector and fulfil our purpose of building a better future through responsible oil and gas development. We will do this by successfully executing our long-term business plan which will grow production and generate substantial cash flows to create value for all our stakeholders.

The multi-year drilling programme we started in Ghana last April continues with strong performance. At Jubilee, we have brought onstream two water injection wells and are in the process of completing two more wells, which will develop a gross combined reserve of 17 mmstb within the core Jubilee area. Our drilling programme also includes two key strategic wells at TEN which will help define the future of this high potential development. The successful pre-emption of the Kosmos-Occidental deal in Ghana for $118 million in March has increased our net share of daily production from Jubilee and TEN by c.4,000 bopd on an annualized basis in 2022, completing one of the critical actions for 2022 from our corporate scorecard. Full-year production guidance for 2022 remains in line with our previous forecast of 59-65,000 bopd.

We have also embarked on an operational transformation in Ghana, which has delivered strong performance across safety, reliability and costs. In order to sustain this performance and to drive a further reduction in costs, we are planning to take control of the operation and maintenance (O&M) of the Jubilee FPSO from MODEC.

There is a very significant gas resource in Jubilee and TEN. Reliable gas supply from Jubilee currently fuels c.30% of thermal power generation in Ghana and provides much needed LPG for the domestic market. We are in active discussions with our JV partners and the Government of Ghana for not only the continued offtake of associated gas from Jubilee, but also the non-associated gas resources in TEN. The timely development of this resource will support energy security for Ghana and catalyse industrial development in Ghana. Combined with the progress we expect to make with our carbon offset projects, Tullow will continue to be a leading investor in Ghana with an integrated offer across oil, gas and local content.

The rest of the portfolio is also well positioned to create value. We expect to sustain production in our non-operated assets and we are seeking to farm down some of our equity in Kenya to a strategic partner. We are making good progress with this farm down and we continue to work closely with the Ministry of Petroleum and Mines to secure FDP approval. We believe that Project Oil Kenya can generate material, long-term value which will complement our portfolio in West Africa and diversify our business.

In our exploration portfolio we are aiming to get the best possible returns and we are about to spud an exciting well in Guyana. We expect to announce the result of this well in the third quarter of 2022.

There can be no doubt that our industry is in flux as many major companies in the oil and gas sector seek to shift their focus away from Africa. As a responsible operator with a long history in both West and East Africa, Tullow is uniquely positioned to benefit from the opportunities presented by this period of flux. The Board and I are determined that Tullow takes advantage of those opportunities as they appear, and we would not be able to do this without the hard work that we have undertaken over the past two years to address the issues our company faced. Now, we have the clear potential to grow our business both organically and inorganically and I strongly believe that Tullow can and will deliver substantial value to all our stakeholders in the coming years. I would like to finish by thanking our investors, our host nations and host communities and our staff for their support over the past year.”

Rahul Dhir, Chief Executive Officer, Tullow Oil plc

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