West Africa-focused oil and gas company, Tullow Oil PLC, has announced that its Chief Executive Officer, Rahul Dhir, will step down from his role and resign from the board in 2025.
The company made this announcement on Thursday, December 5, 2024, noting that the board has already initiated the process to find a successor.
In a statement, Phuthuma Nhleko, Tullow’s Non-Executive Chairman, praised Dhir’s tenure, describing it as a period of comprehensive turnaround for the company. In the statement, Nhleko remarked, “I would like to thank Rahul for his hard work and dedication to Tullow.”
“Since joining in 2020, Rahul has led a comprehensive turn-around and strategic reset of Tullow, focused on the delivery of operational and financial performance, debt reduction, and positioning the company for future growth.”
Phuthuma Nhleko, Tullow’s Non-Executive Chairman
Dhir, who was appointed CEO in July 2020, will remain in his position until a successor is determined, ensuring a smooth leadership transition.
This strategic move follows Dhir’s pivotal role in steering the company through a comprehensive turnaround over the last four and a half years.
Reflecting on his tenure, Dhir said, “It’s been a privilege to serve Tullow during these past four and a half years.”
“During this period, we have achieved a step change in our operating performance, cost structure, and capital discipline.
“[Also,] we delivered over $1.1 billion in free cash flow while reducing our net debt from $2.8 billion to approximately $1.4 billion.”
Rahul Dhir, Chief Executive Officer
Dhir further highlighted the strong culture of teamwork at Tullow, describing it as a significant driver of the company’s success.
“I am also very proud of our team’s strong culture of ownership and commitment to business delivery.
“With a strong pan-African platform, Tullow is well-positioned as a trusted partner and responsible operator to deliver the next phase of growth.”
Rahul Dhir, Chief Executive Officer
Under Dhir’s leadership, Tullow achieved significant milestones in operational efficiency and financial restructuring, which have contributed to the company’s resilience in the highly volatile oil and gas sector.
Market Reaction
The announcement of Dhir’s resignation has had immediate repercussions on Tullow Oil’s stock performance. According to the Morning Star, “Shares of Tullow dropped by 7.0% on the London Stock Exchange, closing at 22.88 GBP per share following the news.”
This decline reflects investor concerns about leadership uncertainty and the potential challenges of maintaining the company’s turnaround momentum under a new CEO.
The market’s reaction underscores the critical importance of identifying a capable successor to sustain the progress made during Dhir’s tenure.
Tullow Oil remains a prominent player in the oil and gas sector, particularly in West Africa, where its assets in Ghana, Gabon, and Côte d’Ivoire form the backbone of its operations.
The company has emphasized its commitment to maintaining its strategic focus and ensuring a seamless transition to new leadership.
Phuthuma Nhleko noted that the search for a successor is already underway, with a focus on identifying a leader who can build on the foundations laid by Dhir.
“We are confident that Tullow will continue to deliver value for its shareholders and stakeholders as it enters its next phase of growth,” Nhleko stated.
Dhir’s contributions have left Tullow better positioned to weather industry challenges and capitalize on growth opportunities, marking a significant chapter in the company’s history.
As Tullow Oil prepares for this leadership transition, stakeholders will closely monitor developments, particularly the company’s ability to maintain operational stability and strategic focus in the coming months.
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