Tullow Oil Posts US$634Million Profit In 2021

Tullow Oil plc has posted a gross profit of $634 million for the full year 2021, representing a jump of $231million from the gross profit of $403million it recorded in 2020.

The independent oil and gas exploration and production group per its full year results for the year ended 31 December 2021 released on Wednesday, March 9,2022,  recorded revenue of $1.27billion and a loss after tax of $81 million primarily driven by exploration costs written off, impairments, restructuring costs and other provisions.

Capital and decommissioning expenditures for the full year amounted to $263 million and $69 million respectively.

The company’s underlying operating cash flow for the year amounted to $711 million while reporting a free cash flow of $245 million.

Tullow said its full year operating costs reduced to $269 million (2020: $332 million), driven by lower facilities operations and maintenance costs in Ghana, as well as asset disposals in Equatorial Guinea ($23 million).

Cash operating costs excluding COVID-19 operating procedures and shuttle tanker operations in Ghana, were $12.1/boe (2020: $11.8 /boe).

According to Tullow, its group working interest production averaged 59.2 kboepd, in line with guidance with notable production growth from Jubilee in Ghana and Simba in Gabon, but lower production than expected from TEN and Espoir.

“In Ghana, strong performance delivered across key operational areas of FPSO uptime, water injection and gas processing. Drilling recommenced in April, with four wells and a work over successfully completed, ahead of plan,’’ Tullow said.

Announcing the results, Tullow Oil Chief Executive, Mr. Rahul Dhir said “Following a transformational 2021, in which Tullow successfully refinanced its balance sheet, drilled highly productive wells in Ghana and demonstrated operational excellence and financial discipline across the Group, we are now concentrating on the successful delivery of our long-term business plan. This year will see a great deal of activity at our flagship Jubilee field with investment in new infrastructure and new wells to grow production in the near term and we are taking on the operation and maintenance of the FPSO.

“At TEN, we will drill two important, strategic wells that will help define our future plans for the fields and we will continue to build production in Gabon. I also expect us to make tangible progress towards our ambitious target of achieving Net Zero by 2030. With additional opportunities to deliver value across our portfolio, including gas commercialisation in Ghana, our revised Kenya development project and an exciting well in a proven play in Guyana, we are well-placed to deliver value from our assets and to grow our business.”

Source: https://energynewsafrica.com