Our history and performance

Children playing outdoors, Tullow facility in background

"It started in a small town called Tullow, about 35 miles south of Dublin, Ireland. In the 80s there were loads of companies starting off in the North Sea and Irish Celtic Sea. I was talking to a friend of mine in the bank one day and he was talking about small oil fields in Africa, which had been left behind by the majors and had no-one to work them. That is where the idea came from. I contacted another friend of mine in the World Bank who told me about a project in Senegal. They had some small gas fields that they were trying to get people to develop, so I setup Tullow Oil to rework those old fields. I knew nothing about the oil and gas industry at the time, which made it more challenging. No one thought Tullow would succeed because of my lack of knowledge of the industry, no major backers and I was starting a company in a country with no oil industry."

Aidan Heavey
Founder and Chief Executive Officer

Aerial view of development land

Following the signing of a licence agreement in Senegal in 1986, gas production and sales commenced in 1987. The same year Tullow listed its shares on the London and Irish Stock Exchanges. In 1988, Tullow expanded its operations into the UK by acquiring exploration acreage and proven gas fields. In 1989, Tullow was awarded its first onshore UK licence and acquired exploration acreage in Spain, Italy and South Yemen.

Operational information: 8 countries | 42 employees

Financial information: £1.7 million revenue | £250,000 operating profit

Share information: 0.22 pence basic earnings per share

Close up of industrial towers

In 1990, Tullow signed its first licence agreement in Pakistan, laying the foundations for the Group's South Asia portfolio of assets. Gas was discovered at the Sara field in Pakistan in 1994 and eventually brought on stream in 1999. New countries were added throughout the decade with licences acquired in Bangladesh, India, Côte d'Ivoire, Egypt and Romania. Activities were relinquished in four countries during the period.

Operational information: 8 countries | 89 employees | 79 mmboe reserves

Financial information: £5.2 million revenue | £11.7 operating loss

Share information: 7.11 pence basic loss per share

Oil platform at sea

2000 saw the beginning of a period of an accelerated pace of activity for Tullow, starting with the announcement of a £201 million acquisition of producing gas fields and related infrastructure in the UK Southern North Sea from BP. This proved to be a catalyst for the Group's positioning as a leading player in the CMS and Thames/Hewett areas. In 2000, Tullow re-registered in the UK.

Operational information: 8 countries | 89 employees | 73 mmboe reserves | 10,000 boepd production*

Financial information: £7.8 million revenue | £635,000 operating profit

Share information: 0.26 pence basic earnings per share

* working interest basis

Close up of pipe work

This was the first defining and transformational period for the Group with the integration of its 2000 UK acquisition and growing production in core areas, as a result of re-investment in exploration and development activities. Strong increases in sales and profits were achieved and Tullow focused its financial resources and management attention on offshore UK, West Africa and South Asia.

Operational information: 8 countries | 128 employees | 70 mmboe reserves | 24,800 boepd production*

Financial information: £129.6 million revenue | £30.6 million operating profit | £85.0 million operating cash flow**

Share information: 2.92 pence basic earnings per share

* working interest basis ** before working capital movements

Horizon at sunset from oil platform

2004 was a remarkable year. The Group more than doubled in size, mainly as a result of the Energy Africa acquisition which was completed in May that year. Overall the Group spent US$1 billion on acquisitions and investments in 2004, creating a strong portfolio of international exploration, production and development assets. Record levels of production, sales revenue, profits and cash flow were achieved.

Operational information: 16 countries | 147 employees | 327 mmboe reserves | 40,600 boepd production*

Financial information: £225.2 million revenue | £56.8 million operating profit | £139.5 million operating cash flow**

Share information: 5.88 pence basic earnings per share | 1.75 pence dividend per share

* working interest basis ** before working capital movements

Close up of oil platform

The integration of Energy Africa progressed well and Tullow delivered a very good operational and financial performance in 2005. Production, profits, earnings and cash flow grew strongly and the Group had two UK North Sea gas discoveries, one discovery in Gabon and one in Mauritania.

Operational information: 15 countries | 174 employees | 358 mmboe reserves | 188% reserves replacement | 58,450 boepd production*

Financial information: £445.2 million revenue | £198.6 million operating profit | £309.5 million operating cash flow**

Share information: 17.50 pence basic earnings per share | 4.0 pence dividend per share

* working interest basis ** before working capital movements

Oil well on land

There were five oil discoveries in Uganda during 2006, which established the existence of a working hydrocarbon basin and marked the beginning of proving up a world-class major new oil province there. There also were three gas discoveries in the UK. For the year the Group had a 58% exploration success rate with 7 discoveries out of 12 wells. In the third quarter, Tullow announced its largest acquisition ever with a US$1.1 billion bid for Hardman Resources Limited. This transaction became effective in December 2006 and completed in January 2007.

Operational information: 22 countries | 250 employees | 506 mmboe reserves | 42% reserves replacement | 58% exploration success rate | 58,450 boepd production*

Financial information: $1,066.7 million revenue | $483.8 million operating profit | $822 million operating cash flow**

Share information: 44.7 cents basic earnings per share | 5.5 pence dividend per share

* working interest basis ** before working capital movements

Oil ship lit up at night

2007 was another remarkable year. Tullow recorded its largest ever discovery, the Jubilee field offshore Ghana; the beginnings of proving up a second new major oil province. A 100% exploration success rate continued in Uganda, moving this project closer to the commercial threshold for development. Overall, the Group had a 56% exploration success rate with 9 discoveries out of 16 wells. The Group generated record production, sales revenue, operating cash flow and growth in reserves and resources. Financial results, however, were impacted by lower UK gas prices, increased exploration write-offs and higher depreciation and interest charges.

Operational information: 23 countries | 370 employees | 551 mmboe reserves | 9% reserves replacement | 56% exploration success rate | 73,100 boepd production*

Financial information: $1,279.5 million revenue | $378.5 million operating profit | $949 million operating cash flow**

Share information: 14.2 cents basic earnings per share | 6.0 pence dividend per share

* working interest basis ** before working capital movements

 

Oil platform

Today Tullow is one of the largest independent oil and gas exploration and production companies in Europe. The Group is entering its next phase of growth with a major focus on Africa and its ambitious growth plans. Achieving these will be based on delivering first oil in Ghana in 2010 and continuing to the fast track the development of the significant resources discovered in Uganda. 2008 was the Group's best ever year to date from an exploration, operational and financial perspective. Tullow achieved a 77% exploration success rate with 17 discoveries out of 22 wells. Production experienced a natural decline as Tullow refocused resources away from mature UK assets to its major projects in Africa.

Operational information: 22 countries | 540 employees | 825 mmboe reserves | 582% reserves replacement | 77% exploration success rate | 66,600 boepd production*

Financial information: $1,310.6 million revenue | $578.5 million operating profit | $987 million operating cash flow**

Share information: 58.8 cents basic earnings per share | 6.0 pence dividend per share

* working interest basis ** before working capital movements

Men looking off oil well

2009 was another great year for Tullow. Across the business our people, processes, operations and projects delivered on all fronts. Exploration and Appraisal (E&A) activity continued apace, delivering a record 87% success rate with 13 discoveries out of 15 wells for the year. The Group's financial results were in line with market expectations and reflect the stage we are at in developing the business. Capital allocation in recent years has focused on building and commercialising our resource base. With the first oil from Ghana later this year, we are entering a phase that will deliver major production growth, which will underpin a stronger financial performance. As a result, Tullow is in a period of transition and this will be reflected in our 2010 and 2011 results.

Operational information: 23 countries | 669 employees | 894 mmboe reserves | 437% reserves replacement | 87% exploration success rate | 58,300 boepd production*

Financial information: $915.9 million revenue | $151 million operating profit | $588 million operating cash flow**

Share information: 3.2 cents basic earnings per share | 6.0 pence dividend per share

* working interest basis ** before working capital movements

A group of Tullow employees on a oil platform

Tullow's highlight of 2010 was achieving First Oil from the Jubilee field offshore Ghana in record time. We are now a deepwater development operator having delivered production on schedule, within 5% of the original budget. We continued to demonstrate exploration and appraisal (E&A) success with an 83% success ratio, finding hydrocarbons in 24 out of 29 E&A wells during the year. Our reported financial results for 2010 are materially ahead of 2009. The successful equity placing in 2010 coupled with the planned Uganda farm-down, and the increased cash flow from Ghana, will ensure that the Group remains well funded to execute its exploration-led growth strategy.

Operational information: 22 countries | 935 employees | 1,388 mmboe reserves | 1,339% reserves replacement | 83% exploration success rate | 58,100 boepd*

Financial information: $1,089.8 million revenue | $234.6 million operating profit | $762 million operating cash flow**

Share information: 6.1 cents basic earnings per share | 6.0 pence dividend per share

* working interest basis ** before working capital movements

Employee operating machinery

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.

Operational information: 22 countries | 1,548 employees | 1,742.8 mmboe reserves | 959% reserves replacement | 74% exploration & appraisal success ratio | 78,200 boepd*

Financial information: $2.3 billion revenue | $1.1 billion operating profit | $1.8 billion operating cash flow**

Share information: 72.5 cents basic earnings per share | 12.0 pence dividend per share

* working interest basis ** before working capital movements

A group of Tullow employees on a oil platform

2012 was a year of major progress for Tullow. We materially enhanced the business with a basin-opening oil discovery in Kenya, by adding highly prospective new licences in Africa and the Atlantic Margins, refinancing our debt and partially monetising our Ugandan assets. The Jubilee Field in Ghana nearly reached its full potential and provides the base for our future production profile and operational cash flow. Our financial position underpins our highly ambitious 2013 exploration programme which has high-impact wells planned in Kenya, Ethiopia, Norway, Mauritania, Mozambique, Côte d’Ivoire and French Guiana. This focus on exploration-led growth, together with active portfolio management and Tullow’s strong balance sheet, provides an excellent platform for growth in 2013 and beyond.

Operational information: 25 countries | 1,415 employees | 1,202.8 mmboe reserves | 358% reserves replacement | 74% exploration & appraisal success ratio | 79,200 boepd*

Financial information: $2.3 billion revenue | $1.2 billion operating profit | $1.8 billion operating cash flow**

Share information: 68.8 cents basic earnings per share | 12.0 pence dividend per share

* working interest basis ** before working capital movements

 

Etuko 1 well siteTullow performed well in 2013. The business generated almost $2 billion of operating cash flow and has established a flexible and strong balance sheet. The Group delivered another year of exploration and appraisal success, most notably in onshore Kenya, and made significant progress with its key developments in Ghana, Kenya and Uganda which will deliver major increases in production and cash flow over the next 3-5 years.

An ambitious exploration and appraisal programme is planned for 2014 which is targeting opportunities in our core plays in Africa and the Atlantic margins with a significant number of wells testing multiple Tertiary Rift Basins across Kenya and Ethiopia. As with previous years, we are aiming for resource additions of over 200 mmboe and we are well placed for an exciting year of growth in 2014 with an enviable portfolio of assets and opportunities.

Operational information: 24 countries | 2,034 employees | 1,409 mmboe reserves | 763% reserves replacement | 65% exploration & appraisal success ratio | 84,200 boepd*

Financial information: $2.65 billion revenue | $381 million operating profit | $1.9 billion operating cash flow**

Share information: 18.6 cents basic earnings per share | 12.0 pence dividend per share

* working interest basis ** before working capital movements