Tullow Oil Confirms Drilling Plans in Ghana
Tullow Oil has announced plans to resume drilling in Ghana’s oilfields in May 2025 following the successful resolution of Ghana’s tax arbitration dispute.
In a statement issued ahead of its 2024 Full-Year Results, the UK-based oil giant revealed that the resolution of the Ghana Branch Profits Remittance Tax arbitration removes a $320 million contingent liability and reaffirms the integrity of its petroleum agreements with the government.
For the 2024 financial year, Tullow reported revenue of $1.5 billion at an average realized oil price (pre-hedging) of $80.2 per barrel. The company also reduced its net debt to $1.45 billion, bringing its gearing ratio to 1.3 times.
Operational Performance
Tullow’s full-year working interest production averaged 61.2 thousand barrels of oil equivalent per day (kboepd), including 6.6 kboepd of gas.
Production from the Jubilee oil field was estimated at 33.9 kbopd net (gross 87.0 kbopd), while the TEN field produced 10.2 kbopd net (gross 18.5 kbopd).
The company successfully brought five new Jubilee wells—three producers and two water injectors—onstream in 2024, completing the drill program approximately six months ahead of schedule with no recordable safety incidents.
Overall Floating Production Storage and Offloading (FPSO) uptime at Jubilee and TEN averaged 97% for the year.
Reserves and Resources
Tullow reported a reduction in reserves, which included 22.4 million barrels of oil equivalent (mmboe) of group production in 2024 and a revision on Jubilee, although the estimated volume of oil-in-place remains unchanged.
However, there was an upward revision of reserves in the TEN field, supported by significant progress in reducing fixed costs, particularly in relation to the Floating Production System (FPS).
Tullow’s decision to resume drilling in Ghana is expected to enhance the country’s oil production capacity and further solidify its position as a key player in West Africa’s energy sector.
