Tullow Oil reports stable Q1 2024 in Ghana

transportation of oil and gas from plant by truck

Gross productions reached 93 kbopd from Jubilee and 19 kbopd from TEN. (Image source: Adobe Stock)

With high production efficiency from the Jubilee and Ten fields, Tullow Oil reported a stable first quarter in 2024

Gross productions from Jubilee reached 93 kbopd (36 kbopd net) while surpassing expectations, TEN yielded 19 kbopd (10 kbopd net). The interim gas sales agreement that is currently in place for Jubilee associated gas has been extended for 18 months at US$2.95/mmbtu with applicable indexation.

More than three new Jubilee wells were brought onstream, and a water injector well will be online in the second quarter. If all goes well, Tullow can wrap up the ongoing drilling programme six months before schedule.

With a full year free cash flow guidance at US$200-300mn, the company is on track to deliver US$600mn free cash flow over 2024 to 2025 at US$80 per barrel and sustainable free cash flow generation thereafter.

It can also bring down net debt to less than US$1.4bn and cash gearing of net debt to EBITDAX at US$80 per barrel by 2024 end.

Group working interest production guidance remains 62-68 kboepd, with the full-year outcome expected to be towards the lower end of the range.

Production from non-operated portfolio in Gabon and Côte d’Ivoire was in line with expectations at 13 kboepd net in the first quarter.

Tullow Oil will publish its 2024 Half Year Results on 7 August.

Capitalising on high oil price

Rahul Dhir, CEO, Tullow, said, “I would first like to thank our investors, host nations and host communities for their support ... I look forward to reflecting on the substantial progress Tullow has made and the strong outlook for the future as we continue our trajectory to build a unique pan-African platform for growth.

"Since the start of the year, we have seen good delivery of our operational programme. We are on track to deliver our free cash flow expectations of US$600mn over 2024 to 2025 at US$80/bbl and we are well placed to capitalise on a higher oil price environment. At the same time, we are positioning ourselves to deliver material sustainable free cash flow in 2026 and beyond.”

In the company's last annual update, Dhir had highlighted its continued focus on operational excellence, capital efficiency and investments to drive growth.