Strategy

Strategy

Tullow’s strategy is to create a business where our low-cost, long-life asset base in Africa creates the high-margin cash flow that funds our growth, reduce our debt and deliver shareholder returns.

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Tullow's four strategic priorities are:

LOW-COST, LONG-LIFE PRODUCING ASSETS

Maintaining and continuing to invest in our production and development assets remains a key priority. The production revenues provide free cash flow to reduce debt, re-invest and deliver shareholder returns. Managing these assets safely, to high operational standards, utilising local staff and suppliers, whilst minimising costs and maximising production revenues is our constant focus.

  

EXPLORATION TO BUILD RESERVES

Building our reserves, resources and future production through targeted and disciplined exploration in Africa and South America is another key priority. We continuously high-grade our low cost acreage portfolio, managing equity interests to extract value, whilst retaining material exposure to our most highly prized drillable prospects.

  

ACTIVE PORTFOLIO MANAGEMENT

We actively manage our asset portfolio through divestments and acquisitions. Farm-downs, disposals and acquisitions help us to manage our financial risk exposure, generate cash or add value‑accretive assets to our portfolio. We will also look to acquire assets at any stage in the life cycle where we can create value for our shareholders.

  

DISCIPLINED, RETURNS-FOCUSED CAPITAL ALLOCATION

Prudent capital allocation, combined with carefulcost management, runs through all our decision making. It ensures our assets remain competitive and helps us achieve a balance between investing in the short-, near- and long-term growth engines for the business.