Tullow Oil reports $1.6 billion revenue for 2023
Tullow Oil reported stellar fiscal year 2023 financials, boasting revenues exceeding $1.6 billion, inclusive of hedge costs amounting to $140 million. Despite market volatility, Tullow’s average realized oil price, post-hedging, stood at $77.5 per barrel.
Tullow Oil’s operational prowess shone through in 2023, achieving a significant milestone with the start-up of Jubilee South East. This marked a substantial production uptick, surpassing 100 thousand barrels of oil per day (kbopd). The company’s full-year working interest production averaged approximately 63 thousand barrels of oil equivalent per day (kboepd), including 6 kboepd of Jubilee gas.
Against a challenging economic backdrop, Tullow Oil showcased financial resilience, reducing net debt by $250 million to reach $1.6 billion by the year-end. The company surpassed its target gearing ratio, achieving 1.4 times, ahead of the projected 1.5 times. This feat was propelled by a gross debt reduction of $400 million, driven by note tenders and annual amortizations.
The company executed a significant step in its refinancing strategy, securing a new $400 million debt facility in collaboration with Glencore. This strategic move bolsters the company’s financial position and underscores its commitment to sustainable growth and operational excellence.
Tullow Oil continued its strategic portfolio optimization in 2023, finalizing the sale of the Orinduik license in Guyana. This move aligns with the company’s commitment to concentrate on core production assets, enhancing overall operational efficiency and resilience in a dynamic market environment.
