Independent oil and gas exploration and production group Tullow Oil's annual report highlights its shift of focus on high-return assets in Africa
Total oil and gas production for the year ended 31 December 2023 has been 62.7kboepd.
Production from the Jubilee South East has exceeded 100,000 bopd, a generous yeild given the major infrastructure investment that went into bringing the field onstream.
The company attributes the success of bringing seven Jubilee wells onstream to strong operating, drilling and completion performance, and facilities uptime of 96% in Ghana.
It has taken a material step in refinancing strategy with new US$400mn five-year Glencore debt facility, with proceeds available for liability management of the senior notes maturing in March 2025.
Swap agreement and licence extensions around Tchatamba production hub has not only led to an increase in Gabon reserves, but also helped centralise portfolio.
The company expects production in 2024 to average between 62 to 68 kboepd, including 7 kboepd of gas, and has set capital expenditure estimates at US$250mn.
Rahul Dhir, CEO, Tullow Oil plc, said, "2023 was a year of significant achievements, including start-up of Jubilee South East that delivered material production growth from our core operated field, a new revenue stream established from the sale of Ghana associated gas; and reserves growth in Gabon through licence extensions. We also generated free cash flow ahead of expectations despite a lower year-on-year realised oil price and demonstrated our ability to access long-term capital through the US$400mn debt facility agreement with Glencore.
"In line with our strategy, we are continuing to focus relentlessly on operational excellence, capital efficiency and investments to drive growth. This strategy is delivering material cashflow generation and we are on track to deliver our target of US$800mn free cash flow over the 2023 to 2025 period and optimise our capital structure.
"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."
