Tullow Oil, partners make $19bn total investment in Jubilee, TEN; delivers $6bn in revenue to Gov’t
Tullow Oil together with its partners, Kosmos Energy, Ghana National Petroleum Company (GNPC), Petro SA and Jubilee Oil Holdings Limited (JOHL), have invested close to $19 billion into the operations of the Jubilee and TEN oil fields since 2010 and delivered $6 billion in revenues to the government within that same period.
Recently, Tullow and its partners, invested in the south-east side of the Greater Jubilee field, increasing production capacity of the field from 70,000 to 100,000 barrels per day. The success of the Jubilee South-East project affirmed the partners’ conviction to continue investing in existing assets, rather than shifting focus elsewhere.
The company’s full-year 2023 results, released last week, revealed that it delivered $170 million in free cash flow last year, ahead of a $150 million projection. Tullow’s current market capitalisation is $410 million and expects to generate $800 million in free cash flow over the 2023- 2025 period.
Speaking to the investment community during its “Facts behind the Figures” session with the Ghana Stock Exchange, Managing Director, Wissam Al-Monthiry said: “Over the years, we have contributed significantly to Ghana’s economic growth, supported the communities in which we operate and made dreams come true for many in the country. It speaks to the consistency of our commitment to build a better future for our host country through responsible oil and gas development. We see great potential in our existing assets and with timely support from key stakeholders, we can deliver even greater benefit to the people of Ghana.”
Group Finance Director, Richard Miller, speaking at the same session, said Tullow’s 2023 full-year results indicate that the company’s strategy to focus on debt reduction, grow production and deliver free cash flow, is beginning to yield good results.
Managing Director of the Ghana Stock Exchange, Abena Amoah said: “Tullow remains a strategic member of the exchange and has, over the years, contributed significantly to deepening the market in terms of capitalisation and diversification. We look forward to forging a greater partnership with the company in the years to come. Our exchange is also growing, and we are witnessing interesting times with new and potential listings underway.”
This year, Tullow expects to bring five new Jubilee wells online (three producers and two water injectors), which will be the last set of wells for the current drilling campaign period, expected to end by the middle of this year.
The 2021-2024 drilling campaign has achieved a number of records; being the fastest (it is ending six-months before schedule) and lowest cost programme compared to previous campaigns. Tullow plans to resume its next drilling campaign programme in 2025.
Meanwhile, Tullow Oil has affirmed its commitment to Ghana’s socio-economic growth through its operations in the country.
