Tullow Oil Posts $110m Loss

Rahul Dhir

 

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

This was contained in the oil exploration company 2023 full year results released in London March 6, 2024.

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

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

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

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”.

Tullow Oil revealed that production from the Jubilee South East project in July was a landmark event, marking a step towards 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 on stream in 2024.

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