How we create value

We have developed a strong track record of successfully acquiring assets and companies which complement and extend our portfolio, skill set and business opportunities. Since 2000 we have acquired and quickly integrated UK North Sea gas assets, Energy Africa and Hardman Resources; each creating a step change which has contributed to the transformation of Tullow.

Successful exploration is often the most cost-effective way to add transformational resources. Tullow finds oil and gas through geological expertise and enhanced geophysical prospecting technologies. We balance high-risk exploration drilling in frontier areas which have lots of follow-up potential, with low-risk appraisal and satellite drilling activity.

Turning resources into reserves and then into production revenue is one of our core strengths. We have a successful track record in managing mature production operations and the fast-track development of major projects in Ghana and Uganda is shifting our operating capability to a different level.

Strategic portfolio management dilutes selected exploration and production assets and generates additional cash flow for re-investment into high value growth opportunities. It also provides a platform for us to introduce new partners with complementary skills, gives host governments the ability to participate and establishes a market value for return on future investments.

Value and sustainable long-term growth is created by having a balanced business in which we selectively invest in key development projects and a material annual exploration programme. These activities are funded by a combination of operational cash flow, debt and equity funding and proceeds from portfolio management.