Tullow Oil records US$110m loss in 2023


Tullow Oil has recorded a loss after tax of 110 million dollars for its operations in 2023.

This was announced by the oil exploration company after it released its 2023 full year results in London today (March 6, 2024).

The loss can be attributed to an impairment on the Tweneboa, Enyenra and Ntomme (TEN) development, whose fields are going into decline.

Tullow’s loss is coming after posting 49 million dollars profit in 2022.

Tullow’s revenue for 2023 stood at 1.6 billion dollars compared to 1.7 billion dollars posted for 2022.

CEO on 2023 performance and outlook

Despite the challenging numbers for 2023, the Chief Executive Officer for Tullow Oil, Rahul Dhir described 2023 as a year of significant achievements, including start-up of Jubilee South East that delivered material production growth from the core operated field.

Mr. Dhir said a new revenue stream has been established from the sale of Ghana associated gas; and reserves growth in Gabon through license extensions.

“We also generated free cash flow ahead of expectations despite a lower year on-year realized oil price and demonstrated our ability to access long-term capital through the $400 million debt facility agreement with Glencore” he added.

The Group CEO added that “in line with our strategy, we are continuing to focus relentlessly on operational excellence, capital efficiency and investments to drive growth”.

He pointed out that “ Tullow has a strong and unique foundation to create material value for our investors, host nations and stakeholders and we look to the future with confidence”.

Developments in Ghana

Tullow Oil revealed that production from the Jubilee South East project in July was a landmark event, marking a step change in the field’s production with average daily rates of 30% higher in the second half of the year compared to the first half with rates reaching levels over 100 kbopd.

Gross oil production from the Jubilee field averaged 83.4 kbopd (32.5 kbopd net) in 2023.

This, Tullow says “ was below our expectations, primarily due to water injection reliability challenges and Jubilee South East starting up slightly later than planned”

Tullow Oil expects five new Jubilee wells (three producers and two water injectors) are scheduled to come onstream in 2024.

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