Tullow Oil plc has released its January Trading Statement and Operational Update, revealing a robust financial performance ahead of its 2024 Full Year Results.

The company reported approximately $1.5 billion in revenue, reflecting its resilient operational efficiency, strategic cost management, and improved cash generation.

Rahul Dhir, Chief Executive Officer of Tullow Oil, emphasized the company’s focus on efficiency, production optimization, and sustainable growth.

“Over the last four years, through our commitment to operational excellence and prudent implementation of efficiencies, we have continued to generate free cash flow and have significantly reduced our net debt from $2.81 billion to $1.45 billion.
“Our improved balance sheet, alongside the extension of our revolving credit facility, positions us well as we look to manage our debt maturities and optimize the Group’s capital structure in 2025.”
Rahul Dhir, Chief Executive Officer of Tullow Oil

Dhir also highlighted the resolution of the Ghana Branch Profits Remittance Tax arbitration, which eliminated a $320 million contingent liability and reinforced the validity of Tullow’s Petroleum Agreements in Ghana.

“Following the successful resolution of the Ghana Branch Profits Remittance Tax arbitration and a return to drilling at Jubilee, combined with production optimization activities to reduce decline rates and further cost reductions, 2025 is set to be an exciting year for Tullow as we lay the foundations for capital returns and pan-African growth.”
Rahul Dhir, Chief Executive Officer of Tullow Oil

Despite global market fluctuations, Tullow successfully reduced its net debt to around $1.45 billion, cutting it nearly in half over the past four years. The company’s underlying operating cash flow stood at $652 million, while free cash flow reached $156 million.

This financial improvement, combined with the extension of its $250 million revolving credit facility until June 2025, strengthens Tullow’s balance sheet and positions it for future growth in Africa’s oil and gas sector.

Production Optimisation and Cost Efficiency

Tullow has outlined its production and operational strategy for 2025, with a strong focus on cost efficiency and production optimisation to drive continued cash generation.

Group working interest production is expected to average between 50,000 to 55,000 barrels of oil equivalent per day (kboepd), including 6,000 kboepd of gas.

This forecast factors in a planned two-week maintenance shutdown on the Jubilee field in the first half of 2025, which will have an estimated 4% impact on Jubilee’s annual production.

Tullow’s improved financial stability and stronger operational framework position it as a leading player in Africa’s evolving oil and gas sector. With a clear path toward production growth and capital returns, 2025 is set to be a transformative year for the company.

“We are laying the foundations for capital returns and pan-African growth.
“With a stronger balance sheet and a renewed drilling program, we are well-positioned to unlock the full potential of our assets.”
Rahul Dhir, Chief Executive Officer of Tullow Oil

Tullow Oil’s 2024 trading update demonstrates a company on a strong financial trajectory, with key achievements in debt reduction, cash flow generation, and strategic planning for future growth.

The resolution of the Ghana tax arbitration case, coupled with the planned drilling activities in Jubilee, TEN, and Gabon, highlights Tullow’s commitment to enhancing its operational footprint in Africa.

With a focus on production optimisation, cost efficiency, and strategic investments, 2025 is poised to be a pivotal year for Tullow as it strengthens its position in the oil and gas industry.