Tullow Oil issues the following business and full year guidance update.

Rahul Dhir, Chief Executive Officer, Tullow, commented today:
“Our cash generative business enables us to continue our deleveraging progress. This has been achieved despite underperformance at the Jubilee field, which has been offset in part by strong performance at TEN, lower capital intensity and a continued focus on cost management. We are well positioned to optimise our capital structure and look forward to progressing plans to address our remaining debt maturities.”

Operational update

• Group production year-to-date averaged c.62 kboepd, including 6.5 kboepd of gas, in line with guidance.

Ghana

• Jubilee oil production averaged c.89 kbopd (c.34.5 kbopd net) to end-October, below expectations primarily due to underperformance of the J69-P well as flagged previously, unplanned downtime at the GNGC onshore gas processing plant and periods of reduced water injection due to power outages.
  • Water injection capacity has been increased to c.300 bwpd and gas offtake is currently c.100 mmscfpd. Combined with further production optimisation activities, this is expected to mitigate the declines experienced in the second half of 2024.
• TEN oil production has remained consistent, averaging c.19 kbopd (c.10.5 kbopd net) to end-October, above expectations, with Enyenra and Ntomme wells responding positively to both injection and production optimisation.
• Overall FPSO uptime at Jubilee and TEN has remained high averaging 98% year-to-date.
• A 4D seismic programme in Ghana is expected to start in January 2025, providing further data to optimise well locations for future drilling programmes.

Gabon and Côte d’Ivoire

• Non-operated production is on track to average c.10.5 kbopd net in 2024, in line with expectations.
  • The Simba field, in Gabon, was brought back onstream in August after being shutdown in March.
  • Additionally at Simba, a discovery was made on the Sarafina infrastructure-led exploration (ILX) well and work is ongoing with the operator to determine commerciality.

Mauritania

• Decommissioning activities in the Banda/Tiof fields in Mauritania were accelerated in 2024 and have been completed ahead of schedule and below budget.

Financial update

• Tullow’s Revolving Credit Facility (RCF) has been extended to the end of June 2025 demonstrating continued strong bank support as the Group progresses its refinancing plans. The $250 million facility provides sufficient headroom for the business. 
• Tullow has no uncovered debt maturities until May 2026 and is progressing a range of options to manage debt maturities and optimise the Group’s capital structure.
• The outcome of the arbitration in respect of the Ghana Branch Profits Remittance Tax assessment is now expected by the end of the year.

2024 Guidance update

• 2024 Group production reiterated at c.62 kboepd, as previously guided.
• Capital expenditure and decommissioning spend guidance remains c.$230 million and c.$70 million, respectively.
• Free cash flow is expected to be $150-200 million, below previous guidance of $200-300 million due to timing of payments, namely the incremental Jubilee lifting now expected in early January 2025 and overdue gas payments from the Government of Ghana.
  • The final position within the revised range for 2024 will depend on realised prices of four cargos yet to price, progress on receipt of the overdue gas payments from the Government of Ghana (currently c.$40 million outstanding) and working capital movements.
• Year-end net debt is expected to be c.$1.4bn.

KeyFacts Energy: Tullow Ghana country profile