Tullow Oil plc has reported a decline in its proven and probable (2P) reserves for the first half of 2025, attributing the reduction largely to production performance and revisions at its flagship Ghanaian assets.
However, the company emphasized that new seismic data and licence extensions could unlock additional reserves in the near term, underscoring Ghana’s continued importance in Tullow’s global portfolio.
According to the reserves report prepared by TRACS, “Tullow’s total 2P reserves stood at 113.8 million barrels of oil equivalent (mmboe) as of June 30, 2025.”
This compares with 128.5 mmboe at the end of December 2024, excluding assets in Gabon that were sold in July.
The company said the reduction reflects 7.4 mmboe of production during the period and 7.3 mmboe in revisions linked to field performance, particularly at the Jubilee and TEN projects.
Ghana Dominates Reserve Profile
The Jubilee field remains Tullow’s cornerstone, accounting for 91.1 mmboe of the company’s total reserves.
Of this, 64.1 mmboe are on production, with a further 17.5 mmboe approved for development and 9.4 mmboe justified for development. The TEN field contributes 22.3 mmboe, primarily classified as justified for development.
“Following the Memorandum of Understanding with the Government of Ghana to extend the production licences to 2040, TRACS has estimated that 14.7 mmboe of Jubilee Contingent Resources and 3.5 mmboe of TEN Contingent Resources would move to 2P Reserves once the extensions are executed.”
Tullow Oil plc
The company is banking on new seismic campaigns to support future growth. A 4D seismic survey completed in Q1 2025 and a planned Ocean Bottom Node (OBN) survey in Q4 2025 are expected to improve reservoir understanding and help identify new drilling targets.
“Tullow expects to mature new projects and increase 2P reserves in Ghana.
“This is further supported by ongoing work with the Government of Ghana in relation to a Plan of Further Development for Jubilee, which covers the licence extensions and further drilling opportunities.”
Tullow Oil plc
In Côte d’Ivoire, reserves remain minimal, with just 0.4 mmboe recorded, reflecting the early stage of development in that jurisdiction.
Financial and Economic Outlook
On the financial side, Tullow reported a net present value (NPV10) of $1.53 billion for its reserves portfolio as of July 1, 2025.
The Jubilee field contributed $1.61 billion, while TEN and Côte d’Ivoire registered negative NPVs of $21.3 million and $44.2 million, respectively.
The company highlighted a NPV coverage ratio of 1.6x, comfortably above the covenant threshold of 1.1x, reflecting improved balance sheet resilience following the Gabon asset sale, which raised $307 million in proceeds.
Brent crude prices used in the valuation averaged $66.5 per barrel in 2025 and are projected to rise modestly to $67.1 per barrel by 2029, based on ICE Futures Europe data.
Despite progress, Tullow continues to face risks tied to production volatility and fiscal uncertainty.
The report excluded around $50 million in overdue gas receivables from Ghana, underscoring the company’s challenges in ensuring timely payment for its output.
However, Chief Executive Rahul Dhir has previously stressed that debt reduction and disciplined capital allocation remain central to Tullow’s strategy.
The company’s net senior secured debt stood at $966 million mid-year, reflecting a stronger financial position relative to previous years.
Ghana’s Strategic Importance
The Ghana government’s decision to grant licence extensions to 2040 is seen as a vote of confidence in Tullow’s long-term role in the country’s upstream sector.
The Jubilee field, in particular, is considered critical to Ghana’s oil revenues and energy security.
While the mid-year reserves report highlights near-term declines, the longer-term trajectory remains positive.
With a sharpened focus on Ghana and Côte d’Ivoire, and following its exit from Gabon, Tullow is positioning itself as a leaner operator concentrated on high-value assets.
The upcoming seismic results and the Plan of Further Development will be pivotal in determining the company’s reserves outlook for 2026 and beyond.
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