Industry leading exploration success continued with the opening of a major new basin, offshore French Guiana, as well as further discoveries in Africa. The Group's financial performance has also been strong with record results for the year based on a 35% increase in production and significantly higher commodity prices helping to deliver an increase in profit after tax of 670% to $689 million. Since year-end, Tullow has completed the $2.9 billion farm-down in Uganda. Tullow now has a strong balance sheet providing financial flexibility for future growth.
EXPLORATION & APPRAISAL SUCCESS RATIO
The highlight of the year was the new Zaedyus discovery, offshore French Guiana. Good progress was also made in appraising the Tweneboa-Enyenra-Ntomme (TEN) discoveries in Ghana. A major aerial survey was undertaken over Kenya, Ethiopia and Madagascar, in preparation for the first well in Kenya in early 2012.
Working interest production
In 2011, Group working interest production increased 35% to 78,200 boepd. While there was a strong performance from the Jubilee production facilities overall, productivity issues were experienced with some of the Jubilee wells related to problems with the original well completion design. The intention is to use 2012 to resolve these issues and a remedial work programme is already under way. In 2012, the Group expects to deliver total net production of 78,000 to 86,000 boepd.
In February 2012, Tullow signed two new Production Sharing Agreements with the Government of Uganda. This was followed by the completion of the farm-down of two thirds of its Ugandan licences to CNOOC and Total for a consideration of $2.9 billion. The Group is now ready with its partners to embark on the development of Uganda's oil industry. First material oil production is likely to be from 2016.
LOST TIME injury frequency rate (ltifr)
In 2011, Tullow achieved the best safety performance in its history with the lowest Lost Time Injury Frequency Rate (LTIFR) of 0.38. The Group also continues to foster the creation of shared prosperity in the countries and communities in our areas of operation through localisation, local content development and social enterprise investment, which increased 346% to $11.6 million in 2011.
increase in total workforce
371 new people joined Tullow in 2011, 36% of whom joined our African operations. This represents a year-on-year increase of 26% and brought our total workforce to 1,548 people by year-end. The results of our 2011 global employee and contractor survey continue to show high levels of employee engagement, which at 81% is considerably higher than the industry benchmark.
local national employees
At the end of 2011, 85% of people working in Tullow Ghana were Ghanaian and 84% of people working for Tullow in Uganda were Ugandan. Developing an industry run by nationals through training, education and employee succession planning will create real opportunities for local people to participate in their country's developing oil and gas industry.
2010: $1.1 BILLION
2010: $0.3 BILLION
Profit after tax
2010: $90 MILLION
Operating cash flow
2010: $0.8 BILLION
Basic earnings per share
2010: 8.1 CENTS
Dividend per share
2010: 6.0 PENCE