West Africa focused oil and gas company, Tullow Oil expects its 2022 production guidance between 59,000 to 65,000 barrels of oil per day as it focuses on its assets in Ghana.
Earlier today, May 25, 2022, the company said its multiyear drilling program in Ghana continues with a strong performance, and that it was making good progress on its portfolio and was carefully managing costs, ahead of its annual general meeting.
Chief Executive Officer, Rahul Dhir, said it has been a “transformational year” for the company. Tullow was preparing to take advantage of opportunities in Africa as other firms in the oil and gas sector shift their focus away from the continent, he said.
“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.
“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.
Rahul Dhir
The oil and gas company has interests in over 40 exploration and production licenses across 11 countries. Last year the firm turned its attention to its interests in Ghana, saying it was also looking for a partner in Kenya and exploring a well in Gabon.
Tullow’s Operational Performance
Tullow began its multi-year drilling programme in Ghana in April 2021, and is set to bring on stream more wells this year at the country’s Jubilee and TEN fields.
Last year the company successfully pre-empted the sale of Occidental Petroleum’s interests in the Jubilee and TEN fields to US-listed Kosmos Energy, increasing Tullow’s net share of daily production at the two fields by around 4,000 bopd.
The firm is planning to drive a further reduction in costs by taking control of a floating production, storage, and offloading vessel at Jubilee from Japanese contractor MODEC.
There is also “very significant gas resource” in Jubilee and TEN, Mr Dhir said, with “active discussions” ongoing with partner firms and the government. The company is also exploring the Tano Basin, which spans Ghana and Côte d’Ivoire.
“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,” Mr Dhir said.
“We feel that the oil and gas sector and indeed all commodity-related assets are poised for a decade of strong relative performance following an equivalent period of underinvestment and neglect by investors that has left valuations at near-record low leaves relative to the market.”
Colin Grant, Davy Research Analyst
Tullow Oil reported a loss after tax for 2021 of $81 million (€74 million), due to exploration costs, impairments and restructuring, a narrowing of its 2020 after-tax losses of €1.2 billion.
“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.”
Rahul Dhir
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