Business model

Tullow is a leading global independent exploration and production company. Our business model shows how the different parts of the Group work together to run our business and create value.

how we create value

We create value in two simple ways: we find oil and we sell oil. To achieve this we must execute exploration campaigns, deliver selective development projects, maintain our production and ensure we are suitably financed through a mix of diverse funding options and portfolio management. These elements are the basis of our
exploration-led strategy which is explained here.

How we run our business

Our business model addresses the fundamentals that we must have in place to manage our risks and help us deliver our strategy. These include: sustainable operations; protecting our people, communities and environment; high standards of governance coupled with strong and effective risk management; an engaged multi-disciplined, diverse and entrepreneurial team; and making a positive and lasting contribution where we operate.

  1. Exploration & appraisal

    Execute high-impact, near-field E&A programmes.

    our key strengths and activities

    • Ninety per cent of Tullow’s 1.2 billion boe commercial reserves and contingent resources are low-cost supply oil assets, which we discovered ourselves
    • High-graded portfolio of highly prospective acreage, ready for when market returns
    • Achieving more with less investment, limiting capital exposure through lower equities and targeted carries from partners

    Risk owner

  2. Development & production

    Safely deliver selective development projects. All major projects and production operations focus on increasing cash flow and commercial reserves.


    • Competitive industry operating costs, averaging $14/boe across the Group, with the ability to achieve operating expenditure of around $8/boe in Ghana
    • Ability to handle large-scale complex development projects on time and on budget
    • Expertise to manage crisis situations with seamless transfer to manageable projects

    Risk owner

  3. Finance & portfolio management

    Continually manage financial and business assets to enhance our portfolio, replenish upside and support funding needs.

    Our Key strengths and activities

    • Free cash flow generative, with clear path to paying down debt
    • Sufficient liquidity to protect us through further oil price downturns
    • Ability to flex capital expenditure commitments
    • Commercial attractiveness of Uganda asset proven through farm-down delivery
    • Prudent hedging strategy, protecting us from oil price volatility
    • Strong, long-term relationships with banks

    Risk owner

  4. Responsible operations

    Achieve safe and sustainable operations, minimise our adverse environmental and social impacts, and achieve the highest standards of health and safety.

    Our key strengths and activities

    • Top quartile industry occupational health and safety performance
    • Committed to not exploring for or exploiting oil in World Heritage Sites
    • Signatories of the Voluntary Principles of Security and Human Rights
    • Committed to respectful and proactive engagement with affected communities and the swift resolution of grievances

    Risk owner

  5. Governance & risk management

    Achieve strong governance across all Tullow activities and maintain an appropriate balance between risk and reward.

    our key strengths and activities

    • Risk management process embedded in the business from Board to field operations
    • Integrated Management System (IMS) ensuring one set of policies, standards and procedures that all staff and contractors follow
    • Zero tolerance of bribery and corruption across the business and supply chain

    Risk owner

  6. Organisation & culture

    Build a strong unified team with excellent commercial, technical and financial skills and entrepreneurial flair.

    Our key strengths and activities

    • Efficient team, with clear lines of responsibility and accountability across the business
    • Strong focus on performance management, ensuring delivery of business plans and core strategy
    • Technical expertise retained to deliver large-scale complex projects; and focused and highly prospective exploration programme
    • Exceptional share award rewarding employees’ commitment and engagement

    Risk owner

  7. Shared prosperity

    Create sustainable, transparent and tangible benefits from the presence of oil in host countries.

    Our key strengths and activities

    • Strong and deep relations with core African host nations based on respect and delivery
    • Committed to building capacity among our host nascent oil industries
    • Track record for delivering on local content and localisation commitments

    Risk owner