Tullow Oil Plc reported a 34 percent decline in revenue to US$847 million for 2025 compared with US$1.29 billion the previous year, reflecting portfolio rationalisation and lower production.
It also posted free cash flow of US$99 million and reducing net debt to US$1.35 billion following major asset sales and refinancing.
The independent oil and gas producer delivered adjusted EBITDAX of US$586 million and closed the year with liquidity headroom of US$322 million, after completing the sale of its Gabonese and Kenyan assets, which generated US$347 million in proceeds during the year.
Tullow recorded a profit after tax of US$7 million down 87 percent from US$55 million in 2024 while group working interest production averaged 40.4 thousand barrels of oil equivalent per day (kboepd).
Capital expenditure totalled US$166 million, excluding Gabon, alongside US$17 million in decommissioning spend and provisions.
Net debt declined from US$1.45 billion at the end of 2024 to US$1.35 billion, following divestments, cost reductions and a comprehensive refinancing completed in April 2026, which the company said provides greater financial flexibility.
Chief Executive Officer Ian Perks said the strategic reset undertaken during 2025 has repositioned Tullow for long‑term value creation.
“The consolidation of our portfolio around high‑value Ghana assets and the successful refinancing have given the company a strong financial foundation and flexibility to deliver value for stakeholders,” Perks said.
Operational performance remained strong across Tullow’s core fields offshore Ghana, with average FPSO uptime of 97 percent at Jubilee and TEN. A new Jubilee well, J72‑P, was brought onstream in July 2025 and is producing around 8,000 barrels of oil per day.
Performance improved in early 2026, with first‑quarter production averaging 43.4 kboepd, supporting management’s expectation of delivering at the higher end of full‑year guidance.
In February 2026, Ghana’s Parliament ratified extensions of the Jubilee and TEN petroleum agreements to 2040, enhancing long‑term reserves potential and project certainty.
Tullow also secured revised gas pricing terms from Jubilee starting at US$2.50 per mmbtu, alongside a gas payment security arrangement with the Government of Ghana.
The company signed a Sale and Purchase Agreement in February 2026 to acquire the TEN FPSO for US$205 million gross (US$125.6 million net to Tullow), with completion expected in early 2027.
The acquisition is expected to eliminate leasing costs and deliver operating efficiencies through closer integration with the Jubilee field.
Tullow plans to bring four additional wells onstream in 2026, supported by ongoing 4D seismic and Ocean Bottom Node data analysis, aimed at driving reserves growth and long‑term value from its Ghana portfolio.
Source: Christian Akorlie / businesspostonline
