Tullow Oil records $110 million loss for 2023, attributes loss to challenges faced by the TEN fields

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Tullow Oil has reported a loss after tax of $110 million for its 2023 operations, as disclosed by the oil exploration company during the release of its full-year results for 2023 in London today (March 6, 2024). The loss is attributed to an impairment on the Tweneboa, Enyenra, and Ntomme (TEN) development, which are experiencing a decline in fields.

This loss contrasts with the $49 million profit posted in 2022. Tullow’s revenue for 2023 amounted to $1.6 billion, compared to $1.7 billion in 2022.

CEO’s Insights on 2023 Performance and Future Outlook

Despite the challenging financials in 2023, Tullow Oil’s Chief Executive Officer, Rahul Dhir, described the year as marked by significant achievements. These included the start-up of Jubilee South East, resulting in substantial production growth from the core operated field. Dhir highlighted the establishment of a new revenue stream 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 disclosed that the production from the Jubilee South East project in July was a significant milestone, leading to a notable increase in the field’s production. However, gross oil production from the Jubilee field averaged 83.4 thousand barrels of oil per day (kbopd) in 2023, below expectations due to water injection reliability challenges and a slightly delayed start-up of Jubilee South East. Tullow anticipates the onstreaming of five new Jubilee wells (three producers and two water injectors) in 2024.

 

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