Tullow Oil PLC has reported a significant increase in profits from its operations in Ghana, with profit before tax reaching $411 million in the first half of 2024.
This marks an impressive over 50% rise compared to the $266 million recorded during the same period in 2023. These figures were disclosed in Tullow’s half-year financial results released to investors on August 7, 2024.
The company also contributed $144 million in taxes to the government of Ghana, covering its operations from January to June 2024. This profit is the highest achieved by any of Tullow’s subsidiaries this year.
This financial success comes amid an ongoing dispute between Tullow and the Ghana Revenue Authority regarding tax payments owed for the company’s operations between 2022 and 2023.
On the operational front, Ghana’s offshore oil facilities performed strongly, maintaining a high efficiency level with 97% uptime during the first half of 2024. The Jubilee oil field produced an average of 90,100 barrels of oil per day, which was slightly below expectations. However, production from the Tweneboah Enyenra Ntomme (TEN) oil fields exceeded forecasts, averaging 19,000 barrels per day.
In addition to oil, gas production in Ghana averaged 6,500 barrels of oil equivalent per day (boepd) in the first half of 2024. The current Gas Sales Agreement, which sets the price at $3.00 per million British thermal units (mmbtu), will remain in effect until the fourth quarter of 2025. Discussions are underway to explore additional opportunities for selling gas to third parties, potentially creating a significant long-term revenue stream.
