Tullow Posts $264 Million Profit In Half Year 2022

Africa-focused oil and gas firm, Tullow Oil Plc., has recorded a profit of US$264 million for the first half of 2022 ending June compared with the US$93 million profit it made in the half year 2021.

The figure is a huge jump over what it posted in the first half of 2021.

Tullow recorded a Gross Profit of $620 million ending June 2022 while it spent $380 million on investment and decommissioning for the same period.

A statement issued by Tullow on its half-year report on Wednesday 14th September 2022, showed that the firm witnessed significant growth in its operations over the past year.

The firm recorded $845 million in revenue accrued from an oil price of $87 a barrel.

The report also showed a strong pickup in the company’s production of oil fields in the first six months of this year.

Tullow Oil, in the report, noted that its Group’s working interest production for the first half of 2022 averaged 60.9 thousand barrels of oil equivalent per day (kboepd), in line with expectations.

Gross production from the Jubilee field averaged 82.4kbopd in the first half of the year, representing an increase of more than 15 per cent compared to the first half of 2021.

This is due to goodwill and operational performance, which included the successful completion of the planned, biennial maintenance shutdown of the Jubilee FPSO in May.

Full-year net production guidance for Jubilee was 32kbopd while gross production from the TEN fields averaged 24.3kbps in the first half of the year, in line with expectations.

Full-year net production guidance for TEN is 13kbopd, with the expectation of an increase in production rates when the En21-P well comes on stream in the fourth quarter.

Tullow Oil also announced that its drilling programme which started in April 2021, is ahead of schedule, having completed two previous drilled wells and completed another three wells.

A further six wells are expected to be drilled and two of these completed by year-end. According to Tullow Oil, it spent about $50 million on each well, adding that “this is 10 per cent more than the average cost for these wells that it had worked on in the country’s oil fields.”

Tullow Oil also disclosed that the current pace of drilling continues, the next phase of drilling at Jubilee, which includes wells to be tied into Jubilee South East infrastructure, is expected to be accelerated into the fourth quarter of 2022.

Commenting on the 2022 half-year performance, CEO of Tullow Oil Plc., Rahul Dhir said: “The turnaround of Tullow has gained momentum in the first half of 2022, with solid production from our West African portfolio driving stronger financial performance. We added material, unhedged production in Ghana through the pre-emption of the Kosmos-Oxy deal and took over the Operations & Maintenance (O&M) of the Jubilee FPSO to ensure that we can sustain the good operating performance and deliver further operating cost improvements. Our drilling programme has been very efficient and at current performance levels, we will be able to deliver our planned programme of wells through next year with just one rig.

“The Board of Tullow remains fully committed to the merger with Capricorn which continues to be recommended by both the Tullow and Capricorn Boards on the current terms. We firmly believe that the proposed merger has the potential for material value creation by implementing a combined business plan which accelerates investment in key projects and delivers very significant synergies.

“We have a high quality, opportunity-rich portfolio, a clear and disciplined growth strategy and an improving balance sheet. The Board looks to the future with confidence, and I look forward to sharing further details at a capital markets day,” he said.