Tullow Oil plc 2022 Annual Report and Accounts

Tullow Oil plc

2022 Annual Report

and Accounts

Building a better future

through responsible

oil andgas development

Our purpose

Tullow’s purpose is to build a better future through responsible oil and gas

development. Our sustainable approach is a critical element of our business

strategy. We believe the oil and gas industry can, and should be, anengine of

economic development for emerging African economies. We contribute toour

hostnation's sustainable growth by unlocking value from their resources,

throughreliable, safe, cost-effective and carbon-ecient operations.

Key:

 Exploration

 Development

 Production

 Decommissioning

We create economic value for our host

nations through tax, royalties and

revenue sharing from the extraction and

sale of hydrocarbons. We also create

social value through job creation,

supplier development and community

support through our Shared Prosperity

activities. Tullow has a proven track

record of managing production

operations with high standards of

safety, environmental stewardship

and community engagement.

Wealso have extensive experience

insuccessfully decommissioning

production sites in a responsible

manner when production ceases.

We create value by developing

discovered resources that have been

conﬁrmed to be commercially viable.

The development plans include

technical and commercial

considerations based on extensive

stakeholder engagement on economic,

operational, social and environmental

matters. These plans are subject to

approval by our host governments

and regulators. The development

phase can be highly capital intensive,

with investment in new infrastructure,

local job creation and supplier

development; all progressed with our

Shared Prosperity ambitions in mind.

Development projects are currently

underway or being planned in Kenya,

Ghana, Gabon and Côte d’Ivoire.

We pursue infrastructure-led

exploration opportunities in and

around our production and development

assets. In addition, we have legacy

positions in emerging basins where

we seek to unlock value through

prospect identiﬁcation and

selectiveexploration.

Production Development Exploration

South America

Guyana

Argentina

Europe

Africa

Gabon

MauritaniaCôte d’Ivoire

Ghana

Kenya

Note: countries are not to scale

Tullow Oil plc

2022 Annual Report and Accounts

Financial statements Supplementary informationStrategic Report Governance Report

2022 in numbers

Contents

Strategic report

Our purpose IFC

2022 key metrics 1

Our strategy 2

Our business model 4

Chair's statement 6

Chief Executive Ocer's statement 8

Markets 11

A balanced scorecard 14

Gabrielle's story 16

Operations review 18

Chief Financial Ocer's statement 21

TCFD scenario analysis 23

Finance review 24

Elah's story 28

Sustainability 30

Kwame's story 38

Governance and risk management 40

Section 172(1) statement 47

Viability statement 50

Non-ﬁnancial reporting 52

Corporate governance

Directors’ report 54

Board of Directors 60

Stakeholder engagement 62

Audit Committee report 63

Nominations Committee report 69

Safety and Sustainability

Committeereport 71

Remuneration report 73

Other statutory information 98

Financial Statements

Statement of Directors’

responsibilities 102

Independent auditor’s report

to the members of Tullow Oil plc 103

Group Financial Statements 115

Company Financial Statements 164

Supplementary information

Alternative performance

measures 173

Shareholder information 175

Commercial reserves

and contingent resources

summary (unaudited)

workinginterest basis 176

Group working interest production

61,100 boepd

2021: 59,200 boepd

Operating cash ﬂow

$972m

2021: $711m

Adjusted EBITDAX

$1.5bn

2021: $1.0bn

Proﬁt/(loss) after tax

$49m

2021: $(81)m

Capital investment

$354m

2021: $263m

Free cash ﬂow

$267m

2021: $245m

Net debt

$1.8bn

2021: $2.1bn

Gearing

1.3 times

2021: 2.2 times

Tullow Oil plc

2022 Annual Report and Accounts

Our people:

Building a better future

Gabrielle's story

p.16

Tullow Oil plc

2022 Annual Report and Accounts

Our strategy

At Tullow, we believe that reliable and

adequate energy supplies are critical for

sustaining human progress and ensuring

political stability. We also believe that fossil

fuels will remain a necessary part of the

energy mix for some time, as migration to

alternative energy sources will require

substantial investment in new technologies

and infrastructures over many years to

come. In the meantime, Africa continues

tosuffer from extreme energy poverty,

hindering economic growth and social

advancement. If African nations are to

prosper, they must beneﬁt from their vast

pool of natural resources. For this reason,

our focus at Tullow is to help deliver

prosperity in Africa and our other host

nations through managing the exploration,

development and production of oil and gas

resources safely, eciently, collaboratively

andtransparently. Our differentiated

business strategy is informed by our

longhistory of assetdevelopment in

Africa, our passion to build a better

futurefor our host nations and

ourenvironmental consciousness.

A differentiated business strategy

Our values

Do the right thing

Collaborate

Take responsibility

Make it count

Shared prosperity

A better future

Differentiated business strategy

Our focus

Business growth

Capital eciency

Operational excellence

Our way

Trusted partner

Committed contributor

Attractive employer

Tullow Oil plc

2022 Annual Report and Accounts

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Our business strategy is built on the following themes:

Our focus

Business growth: Developing discovered resources, near ﬁeld and infrastructure-led exploration and M&A

Our business is underpinned by a deep and rich portfolio of discovered resources. For example, our Jubilee and TEN ﬁelds in

Ghana provide signiﬁcant opportunities for inﬁll drilling, facilities expansion and new production from currently undeveloped

parts of the ﬁelds as well as near ﬁeld exploration. In Gabon and Côte d’Ivoire, we have identiﬁed a number of low-risk investment

projects. In these areas we are leveraging our deep geoscience expertise to explore around our producing assets, where the

proximity to existing infrastructure supports fast commercialisation of any discovered resources, resulting in high returns and

rapid payback. We are also working to realise further growth through our discovered resources in Kenya.

Our industry is going through a structural shift as many larger companies de-emphasise their oil and gas business, particularly in

Africa. With a credible presence across Africa and a proven track record across exploration, development and production

operations, we are well placed to deliver value through mergers and/or acquisitions.

Capital eciency: Managing cost and capital to deliver a robust balance sheet

At Tullow every barrel matters and every dollar counts. We operate within a strict cost framework and have capital controls to deliver

returns for our investors and to fuel our growth plans. At the same time, we continue to strengthen our balance sheet, reducing net

debt through the generation of material free cash ﬂow. In 2022, our cash gearing (net debt to EBITDAX) reduced to 1.3 times, a

material acceleration of our deleveraging trajectory which brings conﬁdence that our investments in high-return opportunities,

along with cost and capital eciency focus, are delivering positive results.

Operational excellence: Maximising asset performance, reliability and safety

We focus on operational excellence in all aspects of our activities. We maximise the performance of our assets, leveraging our

engineering, technical and subsurface geoscience expertise to design ecient systems and processes while ensuring timely

equipment replacement and maintenance to deliver safe, reliable and environmentally responsible production performance.

Wecontinuously monitor our workforce requirements to ensure we have the right levels of staff and provide training to ensure

that we have the right skills in place to operate our assets dependably.

Our way

Trusted partner: Operating to uncompromising standards of ethical conduct

Tullow’s success depends on one thing: trust. Trust in Tullow allows us to partner with governments to help alleviate

energypoverty in Africa, maintain positive relations with regulators and inspire conﬁdence in ﬁnancing institutions to ensure

continued access to capital. For Tullow, being a trusted and trustworthy organisation includes maintaining high standards

ofethics and compliance in all that we do, zero tolerance for corruption, responsible tax management and tax transparency

asstrategic imperatives.

Committed contributor: Improving the everyday lives of people in our host nations

When our business succeeds, our host nations beneﬁt. This goes beyond augmenting national revenues from oil and gas; it means

engaging, community by community, to understand local needs and support social advancement in meaningful ways. We encourage

our communities to speak openly with us on matters of importance to them, while investing in social development in multiple

ways. Equally, we operate with environmental consciousness to minimise the impact of our activities on climate change and the

natural environment. Tullow beneﬁts through a collaborative and capable supply chain and employees who enjoy positive

relationships and a respected standing in our communities.

Attractive employer: Nurturing a collaborative, caring and open work environment

Tullow fosters an open team culture in an empowering workplace in which people are conﬁdent and comfortable to engage,

contribute and speak openly about any aspect of what we do or how we work. As an inclusive organisation, we promote respect,

diversity, equality and transparency, underpinned by strong human resources management. We invest in training to enable our

people to realise opportunities for professional advancement. Empowering our workforce is a strategic driver of our success.

Our business model

- Financial resources based on

material free cash ﬂow generated

through our production that fund

business continuity and growth

- Material reserves and resources in

West Africa and signiﬁcant

resources in Kenya

- Positive relationships with

hostnation governments and

regulatory bodies

- Strong reputation as an ethical and

responsible oil and gas operator

- Skilled team including local teams

in Africa with engineering and

subsurface technical expertise

- Strong relationships with local

communities supported by

continuous engagement

- Network of dependable suppliers,

including local suppliers in Africa,

supporting business continuity

andgrowth

- Responsible, safe and

reliableoperations

- Cost focus and capital discipline to

ensure ﬁnancial resilience with a

target to reach gearing of less than

1.0 times net debt to EBITDAX on a

sustainable basis

- Conservative ﬁnancial strategy

supported by hedging to

protectrevenues

- Shared Prosperity with our host

nations and their populations and

local content investment

- Environmental stewardship

throughout our value chain

- Carbon reduction and a target to

reach Net Zero by 2030 (Scope 1

and 2 net equity emissions)

- Ethical conduct in line with our

Code of Conduct at all times

- Maintaining a positive workplace

and upholding human rights

through our value chain

- Tax responsibility and transparency

A value-creating business model

Tullow creates value by investing in the

exploration for, and development and

production of, oil and gas resources. With

anestablished foothold in our host nations,

wemonetise oil and gas from our portfolio of

assets to deliver economic and social beneﬁts

for all stakeholders and contribute to prosperity

in our host nations. Our keen focus on

maximising the performance of our assets

through eciencies and strict cost management,

alongside our commitment to building positive

relationships and partnerships across our

valuechain, has enabled Tullow to mature into

atrusted operator and champion of

sustainabledevelopment.

Tullow Oil plc

2022 Annual Report and Accounts

Our investors

Our host nations

Our people

Inputs CommitmentsStakeholders

Financial statements Supplementary InformationStrategic Report Governance Report

Tullow Oil plc

2022 Annual Report and Accounts

- Reliable, low-cost, high-margin

production

- Group 2022 reserves replacement

ratio of c.90%

- High IRRs

- Identiﬁed potential for 120kbopd

plateau production rate in Kenya

- Strategic positions in

emergingbasins

- Shared Prosperity in education,

local content and enterprise

development in our host nations,

reaching thousands of suppliers

and entrepreneurs

- Attractive workplace nurturing a

skilled workforce with leading-

edge knowledge in the oil and

gassector

- Mitigation of our climate

changeimpacts

- Strong cash ﬂow generation and further

investment in responsible oil and gas

development and production

- Deleveraging whilst maintaining asset value of

the Company, accreting value to our shareholders

- Contribution to economic growth and sustainable

development in our host nations through thriving

and responsible oil and gas development

andproduction

- Tangible social beneﬁts in our host nations

through infrastructure developments, STEM

education, high-skill job opportunities and

supplier engagement and development

- Improved resilience and social cohesion in local

communities, especially ﬁshing communities in

areas of our assets

- Job stability, professional growth and career

development for hundreds of Tullow employees

with a focus on localisation of our African

workforce, reducing social inequalities

- Contribution to global efforts to mitigate climate

change and reduce global climate risks

Outputs Value created

SDG

contribution

Commitments

Tullow Oil plc

2022 Annual Report and Accounts

Chair’s statement

Positioning the company

well for the future

I have very much enjoyed my ﬁrst year as the Chairman of your

company. It has been a year marked by strong operational and

ﬁnancial performance across the Group, which is a testament to

the hard work and commitment of the entire Tullow team. The

team has continued to build on a culture in which every dollar

counts and every barrel matters. I congratulate them on a good

performance that has delivered strong cash ﬂows and led to a

material improvement in the Group’s balance sheet, positioning

your company well for the future.

I have been particularly impressed by the team's focus on

operational delivery as evidenced by the strong drilling

performance in Ghana, the successful Operations and

Maintenance (O&M) transformation at Jubilee and the top

quartile safety performance. The O&M transformation at the

Jubilee is also key to delivering reductions in the operating cost

base and carbon emissions.

Phuthuma Nhleko

Chair

Phuthuma Nhleko reﬂects on his ﬁrst full year as Chair of Tullow and the signiﬁcant

progress the Group made in 2022.

“

At Tullow, we believe that oil

& gas development can be a

major driver for economic

development in Africa, and

therefore we remain

committed to deploying our

expertise and capital to

partner with host

governments to unlock value

from their resources in a

responsible manner.

”

Phuthuma Nhleko

Chair

Tullow Oil plc

2022 Annual Report and Accounts

Financial statements Supplementary informationStrategic Report Governance Report

Strategy

We have a high quality portfolio. The focus of the team on cost

management, disciplined capital deployment and operating

eciency enables us to maximise cash ﬂow generation from

these assets. We are therefore able to self-fund a high-return

investment programme to deliver further value, cash ﬂows and

drive down debt. The organic growth potential from our assets

can be determined with conﬁdence.

Tullow’s operational and ﬁnancial turnaround is widely

acknowledged by both the industry and host governments in

Africa. Tullow's higher credibility will often lead to unique

inorganic opportunities. For instance, last year, our pre-emption

of Kosmos’ acquisition of Occidential Petroleum’s assets in

Ghana was recouped within the year and has helped support our

deleveraging and value creation efforts. The quick turnaround to

secure the necessary approvals also demonstrates the strong

support Tullow enjoys from the Government of Ghana.

Earlier in the year, we were approached by Capricorn Energy

fora potential merger. After considerable deliberation, the Board

decided to recommend the merger to our shareholders. On the

basis of the terms agreed with the Board of Capricorn Energy, we

saw a potential for material value creation for shareholders by

implementing a business plan that accelerated investment in our

key projects, delivered very signiﬁcant synergies including

amaterial reduction in debt service costs. However, once

Capricorn Energy were in receipt of a competitive offer, we

decided not to increase our offer that may not ultimately have

advanced shareholder value. Our disciplined approach was

driven by our conﬁdence in our team and assets that underpin

aclear growth strategy and strengthening balance sheet.

The oil & gas industry is in the midst of a structural change as

many companies assess their long-term commitment to oil &

gas. This will create opportunities for inorganic growth,

particularly in Africa. At Tullow, we have built a unique operating

platform that, along with our deep understanding of Africa,

positions us uniquely to secure these opportunities and deliver

further value.

Tullow’s Board

Over the past year, I have greatly appreciated the support of

Tullow’s Board. I am also pleased that we have appointed Richard

Miller as CFO. Richard brings extensive oil & gas and ﬁnancial

experience to the role having been with Tullow for over 11 years,

including as Interim CFO since April 2022. During that time Richard

led the Tullow Finance team, supporting a number ofacquisitions,

disposals and capital markets transactions. Heplayed a signiﬁcant

role in the continued turnaround of Tullow with the successful

rebasing of Tullow’s cost structure, the resetting of the balance

sheet and the change to a more focused capital allocation.

TheBoard and I look forward to working closely with Richard.

InFebruary 2023, the Company announced the appointment of

Roald Goethe as an independent Non-executive Director. Roald

is a highly experienced oil & gas executive with extensive

commercial knowledge of the energy industry in Africa including

business development, M&A and inoilmarkets, speciﬁcally

hedging, ﬁnancing and trading. TheBoard and I look forward to

working closely with both Richard and Roald.

I was pleased to use the opportunity of the externally facilitated

Board evaluation to focus on the requirements of the Board

tobest support the business in its delivery of the strategy.

Furtherinformation on the evaluation can be found on page 57.

Tullow and Africa

This is a time of great uncertainty and change in the global

energy markets. Despite all the important work being done on

energy transition, its trajectory and pace remain uncertain. For

now, it is clear that the world will continue to consume signiﬁcant

quantities of oil & gas. However, the oil & gas industry has

signiﬁcantly underinvested in new developments needed to

maintain sucient supply. This investment gap means that we

expect the markets to remain volatile, impacting the energy

trilemma ofsecurity, accessibility and affordability.

Society and policy makers should acknowledge the need for

differentiated approaches to the energy transition between the

developed and emerging world and ensure there is a just

transition. This is essential to support economic growth in the

emerging world. We experience this ﬁrst hand in our African

operations. Importantly, we must bear in mind that the African

continent accounts for less than 3% of the world's energy-related

COe emissions to date and has the lowest emissions per capita

of any region. Assuch it is hard to argue against the right of the

African countries to develop their resources for the beneﬁt of

their people, as has been done for decades in countries in the

developed world. Thiswas underscored clearly by many African

leaders at COP27 in Cairo last year.

At Tullow, we believe that oil & gas development can be a major

driver for economic development in Africa, and therefore we

remain committed to deploying our expertise and capital to

partner with host governments to develop local content capacity,

enhance energy security through the long-term supply of

indigenous gas in Ghana and unlock value from our host nations'

resources ina responsible manner.

Conclusion

Rahul and his team continue to build a track record of consistently

meeting expectations and delivering on the strategy. This has

not yet translated into our share price despite higher commodity

prices through the year. However as the Group continues to

restore trust and conﬁdence after the events of 2019, I am conﬁdent

that our investors will be rewarded. Basedon aclear and

disciplined growth strategy we will deliver material free cash

ﬂow that will help reduce debt whilst growing the value of our

company. This will drive material value creation for our shareholders

and shared prosperity for our host nations and communities.

With this compelling vision for Tullow over the nextfew years,

theBoard looks to the future with conﬁdence.

Thank you for your support for Tullow.

Phuthuma Nhleko

Chair

7 March 2023

Tullow Oil plc

2022 Annual Report and Accounts

Chief Executive Ocer’s statement

Creating a unique platform for growth

inthe oil and gas sector

I joined Tullow in 2020, because I had conviction in the quality of

the asset base and the belief that with focus and discipline we

would turn the business around and unlock its underlying value.

The strong operational and ﬁnancial performance of the business

since then validates that conviction. Tullow is now creating value

and generating free cash ﬂow. Our balance sheet is stronger with

signiﬁcant liquidity headroom and leverage of less than 1.5 times.

At the same time, we have created a unique platform for

growthwithin the oil and gas sector. Today we have a strong

anddiverse leadership team with a highly energised organisation

characterised by deep commitment to delivering on our business

plan. There is a real willingness to go “beyond the call of duty”

indelivering excellence. This is evidenced by the successful

transition of the operation and maintenance of the Jubilee FPSO,

the top quartile drilling performance, and the ongoing delivery of

the Jubilee South East Project that remains on time and on budget.

2022 performance

Our strong business performance in 2022 builds on the foundations

we laid in 2021, and clearly, there are many things tocelebrate.

Starting with safety, 2022 was the second successive year of

industry top quartile safety performance with no recordable

incidents in the year and no Tier 1 process safety events.

The team has done a great job in managing inﬂationary

pressures on both G&A and Opex, demonstrating that “every

dollar counts” at Tullow. Through a focus on continuous

improvement, we are seeing initiatives – big and small – to help

unlock value and save costs. Despite sector-wide inﬂation, our

operating expenditure has remained in line with expectations

and we held our G&A costs ﬂat.

On production operations, the team has done a stellar job in

delivering high production eciency and maximising production

– demonstrating that “every barrel matters” at Tullow.

We also successfully transferred the operation and maintenance

of the FPSO at the Jubilee ﬁeld – our most prized asset – from an

external contractor to our operating team. This is a major step in

supporting our vision of becoming a leading low-cost operator

and we have immediately seen the beneﬁcial impact of that

decision with increased uptime and c. 30% lower operating costs

in the second half of the year compared to the ﬁrst. In addition,

what is most energising is the change in morale, attitude and

ownership of the operating team, which has resulted in visible

improvements in control of work, housekeeping, orderliness and

general positivity on the FPSO.

Capital discipline remains at the heart of what we do and I am

pleased to report that we delivered our capital investment

programme within budget. The drilling team has delivered the

Rahul Dhir

Chief Executive Ocer

“

We have a strong and diverse

leadership team with a highly

energised organisation

characterised by deep

commitment to delivering

onour business plan.

”

Rahul Dhir

Chief Executive Ocer

2022 was a solid year of delivery for Tullow with a strong set of ﬁnancial results and

excellent operational performance. Rahul Dhir, Chief Executive Ocer, discusses the

progress Company has made and why he has the conviction that Tullow will continue

unlock its true value.

Tullow Oil plc

2022 Annual Report and Accounts

Financial statements Supplementary informationStrategic Report Governance Report

well programme faster than planned, obviating the need to hire a

second rig. This resulted in further cost savings against our long

term plan and accelerated production growth.

At Jubilee, the development of the South East area is progressing

in line with plans and budget, and once the new wells come

onstream in 2023 we expect total production from the ﬁeld will

exceed 100 kbopd. First oil from the Jubilee South East project

will be a signiﬁcant milestone, bringing previously undeveloped

reserves to production, and highlighting Tullow’s project

management strengths and ability to integrate deliverables

across a global multidisciplinary team.

At TEN, the focus in 2022 was on reservoir management, and we

have been able to reduce annual decline rates to less than half

compared to 2021. The year was not without challenges at TEN.

We were disappointed by the results of the two Ntomme riser

base wells, but did deliver a technically challenging well in

Enyenra North that helped stabilise production rates. Our team

continues to persevere in their efforts to deliver value from TEN,

and while no new wells are planned this year, the focus will

remain on reservoir management and importantly on delivering

a new plan of development to the Government of Ghana,

encompassing inﬁll drilling, phased development of new areas

near existing infrastructure, development of the signiﬁcant gas

resource and drilling of prospective resources.

We also invested $126 million to pre-empt the sale of assets in

Ghana by Occidental Petroleum to Kosmos Energy, and this

investment, which has boosted net production and added to our

net 2P reserves, has already paidback.

In addition to maximising oil production from our two ﬁelds in

Ghana we arealso focused on commercialising the material gas

resources. The war between Russia and Ukraine is having a

profound and long-term impact on LNG ﬂows, as Europe looks to

replace Russian gas with imported LNG. This has created an

imperative in Ghana to develop indigenous gas to provide energy

security and support economic development. Tullow, along with

our JV partners, is committed to working with the Government of

Ghana to provide long-term gas supplies. As part of this process,

we signed an Interim Gas Sales Agreement, representing the ﬁrst

commercialisation of gas from the Jubilee ﬁeld. This agreement

is an important step towards a long-term agreement which will

transform the vast resources across Jubilee and TEN into

another revenue stream for Tullow whilst providing a long-term

source of energy forGhana.

Our non-operated asset portfolio performed broadly in line with

expectations, despite some unplanned downtime at the Espoir

ﬁeld in Côte d’Ivoire and natural decline in some of the more

mature ﬁelds in Gabon. This part of our asset base will remain a

material contributor to production and cash ﬂow, with ongoing

investment to optimise our equity positions and replace

maturing production with moderate capital spend.

Our exploration strategy is largely focused around our producing

assets inWest Africa, where we have a deep understanding of

the geoscience and access to infrastructure enables rapid

development of discoveries. To this end, we have expanded our

strategic position in the Tano Basin by securing a new offshore

exploration licence in Côte d’Ivoire, in an area adjacent to our

producing ﬁelds in Ghana. In addition, we also retain material

legacy positions in the emerging basins of Guyana and Argentina,

where we continue to seek opportunities to unlock value.

Higher oil prices have also brought contingent payments from

previous disposals into focus. In Uganda, at plateau production

Tullow would receive a share of revenue. At $70/bbl, this is

estimated to be c.$15 million per annum and increases to

c.$47million per annum at $100/bbl. The upside exposure is

uncapped and for the full duration of the licence. In Gabon

andEquatorial Guinea, there is potential for receipts of up

to$40million over the next ﬁve years.

Kenya

In March 2023, the Kenya Joint Venture partners submitted the

ﬁnal Field Development Plan (FDP) for approval to the Ministry

ofEnergy & Petroleum (MoEP) and the Energy and Petroleum

Regulatory Authority (EPRA). The FDP is based on a life of ﬁeld

resource of 585mn bbls gross, initial plateau production of

120kbopd and capital investment of c$3.4 billion to ﬁrst oil.

TheFDP approval process, including ratiﬁcation by parliament,

isexpected to conclude later this year. In parallel, we continue

toprogress a farm-down to a strategic partner in a joint process

with our partners.

Proposed merger

In June 2022, Tullow’s Board proposed a merger of equals

withCapricorn Energy in an all-share, nil premium offer.

Thisopportunistic transaction could have resulted in accelerated

investment across Tullow’s portfolio, however, our Board did not

believe that an improved offer in line with the demands of some

of Capricorn Energy’s key shareholders would have represented

good value for Tullow’s shareholders. This decision was supported

by our Board’s strong conﬁdence in Tullow’s business plan that

we outlined at the beginning of the year, and which continues to

deliver value.

Board

Throughout the year I have beneﬁted greatly from the wise

counsel and experience of our Chairman, Phuthuma Nhleko.

Hebrings a deep understanding of the African business and

political landscape along with strategic thinking and a real

focuson value creation.

Richard Miller was conﬁrmed as our permanent CFO in December

2022. Richard has a strong ﬁnancial background, with a focus on

cost and capital discipline and he knows the business really well.

In his role of Interim CFO in 2022, Richard has been a real thought

partner as we have continued Tullow’s transformation, rebasing

our cost structure, improving our balance sheet and bringing a

much clearer focus on capital allocation. I am delighted with his

appointment. I’m also looking forward to working with the

newest member of the Board, Roald Goethe, who was appointed

as an independent non-executive Director in February 2023.

Roald brings a unique commercial and entrepreneurial

perspective which will be help pursue our long-term strategy.

Tullow Oil plc

2022 Annual Report and Accounts

Chief Executive Ocer’s statement continued

Unlocking value for our Host Nations and

SharedProsperity

Our Purpose is to “build a better future through responsible oil &

gas development”. We recognise that the successful delivery of

our business plan is also integral to the economic prosperity and

development of our host nations. Forinstance, in 2022 our

operations in Ghana delivered over $1.5billion in value for Ghana

through taxes, royalties, GNPC’s participating share in the

licences and discounted supply of gas and condensate. Further,

a long-term supply agreement of indigenous gas will enhance

energy security and facilitate industrial development in Ghana.

We actively invest in social programmes across our host nations

with the aim of making a meaningful impact working with the

communities where we operate, with a focus on accelerating

progress through partnerships. In 2022, we enabled more than

9,000 students to access education and we continued to support

local entrepreneurship through theFisherman’s Anchor project,

a micro credit scheme, that provided ﬁnancial assistance to over

1,300 beneﬁciaries. Building local content capacity is

fundamental to the success ofour business, and our goal is to

increase the local participation in our supply chain through open

dialogue, providing business tools, and connecting local

companies with a future ready workforce. In Ghana, our Advisory

Board continues to provide uswith great insights and advice,

helping us improve our understanding of the domestic context

and enhancing our localrelationships.

The symbiotic linkage between Tullow and our host nations is

underpinned by strong relationships with our key stakeholders.

Our host nations recognise the criticality of our operations and

investments to their economic development and energy security.

Therefore they want Tullow to keep investing in their countries to

ensure that they beneﬁt from theirnatural resources in the same

way that many other nations, particularly in the developed world,

havealready.

Climate

Our shareholders will recall that Tullow made a commitment to

being Net Zero on our Scope 1 and 2 net equity emissions by

2030. Work towards this target is well underway with increased

gas handling capacity at Jubilee and process modiﬁcations

ongoing at TEN. Further progress is expected during a planned

maintenance shutdown of the TEN FPSO in 2023. These

developments will enable us to eliminate routine ﬂaring in Ghana

by 2025. At the same time, we are making good progress on a

nature-based carbon off-set project in Ghana with the signing a

Letter of Intent (LoI) with the Ghana Forestry Commission (FC) in

December 2022.

A fundamental redesign of the Kenya FEED has resulted in

reduction of the carbon intensity of the project by c.40%.

Thiswas achieved by limiting GHG emissions in the design,

reinjecting excess gas into reservoirs for reuse at a later stage

and committing to zero routine ﬂaring from the outset. The use

of solar power for pipeline operations and nature based offset

projects offer the opportunity to abate residual emissions.

Tofurther sustain responsible operations, we are considering

anEnvironmental Stewardship Fund and a Shared Prosperity

Fund

to deliver a net positive impact to local communities.

Outlook

Strong operational delivery, rigorous focus on costs and capital

discipline, increased equity in our key operated ﬁelds in Ghana

and higher oil prices drove material, expectation-beating free

cash ﬂow generation in 2022. This accelerated the Group’s

deleveraging with a net debt to EBITDAX ratio of 1.3 times bythe

end of the year. This performance demonstrated the underlying

cash generation potential of the business.

2023 will be an exciting year as we continue to deliver on our

Business Plan, with capital investment, in particular in Ghana,

expected to support production growth through to 2025 and

material free cash ﬂow generation. At an oil price of $80 per

barrel, we expect to deliver $800–$900 million in free cash ﬂow

in the three years 2023-2025. In addition, we are working on

several notable milestones that will deliver material value.

Theseinclude: completion of the Jubilee South East Project

which is key to delivering over 100 kbopd from Jubilee, the Plan

of Development for TEN which will set out a clear pathway for

creating value, commercialisation of gas in Ghana to deliver

secure gas supplies for the nation, and progress on Kenya FDP

and strategic partner induction that willhelp transform the value

of this major resource.

The Tullow team has worked exceptionally hard in 2022 to deliver

the business plan and I thank them for their commitment and

delivery. We are also grateful to our host nations and communities

for their continued support and our shareholders and debt

investors for their conﬁdence in us.

We have created a platform of assets and set of capabilities

which are unique within our sector and that gives me great

conﬁdence in Tullow’s ability to deliver growth and value for

allourstakeholders.

Rahul Dhir

Chief Executive Ocer

7 March 2023

Tullow Oil plc

2022 Annual Report and Accounts

Financial statements Supplementary informationStrategic Report Governance Report

A volatile market

during political and

economic uncertainty

Markets

Geopolitics

The conﬂict in Ukraine, elevated inﬂationary

pressures and a slowdown in global growth

were among the key political and economic

events of 2022.

Following a post-pandemic rebound in the global economy in

2021, 2022 saw numerous pressure points emerge amid

heightened political and economic uncertainty.

Russia’s full-scale invasion of Ukraine on 24 February 2022 was,

and continues to be, one of the most signiﬁcant conﬂicts in

Europe since 1945. While the Russo-Ukrainian War acted to

exacerbate cross-asset volatility, energy prices in particular

were driven higher, feeding expectations of a global energy

crisis. The pressures within Europe were particularly exacerbated

given the relatively high dependence on Russian energy exports,

with the inﬂationary pressures further intensiﬁed by Russia’s

decision to cut natural gas supplies to Europe in September.

Consumer price indices printed at record levels across major

economies fuelled by the aforementioned war in Ukraine, surging

energy prices and supply-side factors. Monetary and ﬁscal

conditions imposed during the COVID-19 pandemic compounded

the pressures, leading central banks to exhibit an increasingly

hawkish tilt before ultimately undertaking several rounds of monetary

policy tightening in an effort to stem the pricing pressures.

Oil price volatility was another major characteristic in 2022, with

prices initially rising in the ﬁrst half of the year on constricted

supply dynamics onset by the war. Brent crude reached an

intra-year high of $130/bbl during March in the early aftermath of

the invasion, the highest price demanded for the commodity

since 2008. The environment triggered record corporate proﬁts

within the energy sector and amid a mounting cost of living crisis

domestically, the UK Government announced a temporary 25%

windfall tax on the proﬁts of North Sea oil and gas operators –

the Energy Proﬁts Levy – in May. The tax rate was subsequently

increased to 35%, with the levy set to fall away in March 2028.

Oil markets cooled rapidly in the second half of the year,

withBrent dipping below $80/bbl in early December following

numerous rounds of monetary policy tightening by central banks

and on a particularly weak Chinese demand outlook.

Outside the oil and gas sphere, wider commodities also performed

well in 2022. Coal gained amid record high demand, with the trend

anticipated to extend into 2023. Agricultural markets also saw

large gains, with grain and palm oil eclipsing all-time highs in March

on a culmination of poor weather conditions and pandemic-related

supply disruptions. Combined, the rapidly rising commodity prices

fuelled concerns of an accelerated route to a recession in Europe,

with the higher energy prices a key contributor to elevated

inﬂation levels.

As pricing pressures became entrenched, central banks

undertook several rounds of monetary policy tightening as

policymakers weighed the beneﬁts of tightening monetary policy

conditions against stagﬂation, growing unemployment and

economic ‘hard landing’ risks. Ultimately, the Bank of England,

Federal Reserve and European Central Bank undertook 325bps,

425bps and 250bps of tightening respectively across 2022.

UK political news ﬂow was also in focus, with newly elected

Prime Minister Liz Truss announcing a £150 billion energy plan

support package to ease cost pressures on domestic households.

The announcement was soon followed by a ‘mini-budget’ from

Chancellor Kwasi Kwarteng, with the “biggest package in

generations” of unfunded tax cuts undermining market

conﬁdence and driving a sharp broad-based sell-off across both

domestic equity and debt markets. The yield on the closely

watched UK 10Y Gilt surged by as much as c.130bps through

September as a result, the greatest monthly gain on record for

the asset, whilst also facilitating unprecedented Sterling

weakness, with GBP trending towards parity against USD in late

September. Much of this reversed, however, as new Chancellor

Jeremy Hunt and Prime Minister Rishi Sunak quickly unwound

most of the mini-budget and aimed to stabilise the economy.

Further inhibiting growth in 2022 were Chinese coronavirus

headlines, with the country’s strict adherence to zero-COVID

policies acting as a headwind to global output growth.

Towardsthe year end, the country moved to loosen a range

ofthe zero-COVID measures, including removing the need for

inbound travellers to quarantine and permitting Chinese citizens

to resume outbound travel. However, fears surrounding rising

case levels across the country remained in focus as initial

reopening optimism was overshadowed by a resurgent outbreak

in the world’s second largest economy.

Russia's invasion of Ukraine as well as

recession concerns have caused energy prices

to ﬂuctuate throughout the year and has

highlighted the importance of energy security.

Tullow Oil plc

2022 Annual Report and Accounts

Markets continued

Oil price

Oil markets in 2022 were characterised by

significant volatility, with prices spiking

following Russia’s invasion of Ukraine,

before tapering off later in the year due

to recession concerns amid central bank

monetary policy tightening. ICE Brent

prices traded in a wide range, between

$75-$130⁄bbl, with an average daily price

during 2022 of ~$98⁄bbl.

January prices started the year on the front foot due to the

worsening geopolitical situation in Eastern Europe. Those fears

created upward momentum that carried gains through February

when the invasion of Ukraine was ﬁnally laid bare, and prices

climbed 9.1% month on month (m/m) touching a high of $98/bbl

just as the month ended. In March, the upward trend continued

despite efforts by the US to absorb some of the price shock,

announcing plans to release 180 million barrels from their

national reserves starting from May. Despite a temporary pause

to the crude rally, the move ultimately had limited effect with the

average monthly price during March gaining 19.6% m/m to reach

an intra-year high of ~$130/bbl. However, by April, the imminent

release of US crude stocks was beginning to act as a headwind

tooil markets, and the average monthly ICE Brent ﬁrst month

contract fell by 5.7% m/m and those prices in March would end

up being the highest seen all year.

In May, ICE Brent largely reversed April’s move, posting a 5.5% m/m

gain and reaching $118/bbl after China announced a June

resumption of manufacturing from its key commercial hub of

Shanghai and commentators thought this might signal a change in

China’s COVID-19 policy. Supply-side dynamics in Europe were

also price supportive as the EU began a wide-ranging discussion on

the ban of all Russian energy imports and a price cap. In June, oil

prices trended 4.3% higher m/m but this was short lived after

OPEC+ announced it would materially increase production in July

and August and downward pressure was applied to prices during the

rest of the month. The supply dynamics from all this additional oil,

alongside weakening US and EU macro data, acted to fan demand

concerns. In July, ICE Brent prices continued their downward

move, with prices losing 10.7% m/m to hit a low of $99/bbl amid

bearish macro sentiment and a worsening demand outlook. These

factors continued to weigh on prices over August, with the monthly

average price softening by a further 6.5% m/m as the progressive

increases in interest rates weighed demand forecasts and stunted

future growth expectations across the globe.

In September the expected softening of Chinese COVID-19

lockdowns failed to materialise, and the regime reiterated its

support for its “zero-COVID” policy despite local protests and

theobvious impacts to the China economy. These headwinds

hindered prices and average ICE Brent prices fell by 7.1% m/m,

dipping to $83/bbl for the ﬁrst time since before the war. October

saw a slight improvement to sentiment as a decision by OPEC+

toreverse its earlier boost to output and actually cut production

guided the prompt ICE Brent contract back towards $100/bbl

before ultimately falling short. The end of the year saw a further

decline in market conﬁdence despite the reversal of China’s

“zero-COVID” policy as growth concerns instead focused on

whatthis policy change would mean in the short term – mainly

aburgeoning COVID-19 outbreak and loss of demand/output.

Assuch, average ICE Brent prices during November were 2.6%

lower m/m whilst during early December, ICE Brent reached

its2022 nadir, touching $77/bbl. However, the latter half of

December saw oil regain some ground, slightly boosted by the

introduction of the EU’s Russian oil import ban and price cap

which partially came into effect on 5December. Despite the late

rally, prices during December remained 10.3% lower m/m at

~$81/bbl and prices averaged the year at $98/bbl. Thus, while

prices ended the year lower than they started, 2022 saw the

highest average price since 2014.

Tullow Oil plc

2022 Annual Report and Accounts

Financial statements Supplementary informationStrategic Report Governance Report

Climate change policy:

managing the ‘transitions’

Sharm el-Sheikh Climate Change Conference

(COP27): ‘All of Africa’ COP, focused on

implementation and delivering an

agreement on establishing a Loss and

Damage Fund.

The United Nations Environment Programme (UNEP) Emissions

Gap Report 2022: The Closing Window – Climate crisis calls for

rapid transformation of societies, published in October 2022,

stated that since COP26 (Glasgow, 2021), new and updated

nationally determined contributions (NDCs) have ‘barely

impacted the temperatures we can expect to see at the end

ofthis century’ and that unconditional NDCs point to a 2.6°C

increase in temperatures by 2100, far beyond the goals of the

Paris Agreement. To get on track to limiting global warming to

1.5°C, a 45% reduction in current greenhouse gas emissions

by2030 will be required. For 2°C, a cut of 30% would be required.

As a consequence, a stepwise approach is no longer an option;

what is needed is a system-wide transformation.

The importance of COP27 could not be understated.

TheEgyptian COP27 Presidency deﬁned the summit's four key

goals as: Mitigation: all parties, especially those in a position to

“lead by example”, are urged to take “bold and immediate actions”

and to reduce emissions to limit global warming well below 2°C;

Adaptation: ensure that COP27 makes the “crucially needed

progress” towards enhancing climate change resilience and

assisting the world’s most vulnerable communities; Finance: make

signiﬁcant progress on climate ﬁnance, including the delivery of

the promised $100 billion per year to assist developing countries;

and Collaboration: as the UN negotiations are consensus based,

reaching agreement will require “inclusive and active participation

from all stakeholders”.

African leaders echoed these goals, speaking of the importance

of equity, fairness, and responsibility: ‘Climate change is a global

emergency, and Ghana calls on all parties to act with equity and a

sense of responsibility’, said the President of the Republic of

Ghana, Nana Addo Dankwa Akufo-Addo.

COP27 did in fact serve to highlight the importance of collaborative,

inclusive and meaningful dialogue with a wide spectrum of

stakeholders, the complexity of transforming global energy

systems and the need for differentiated approaches to managing

the energy transition, north vs south, both trajectory and speed,

whilst also ensuring a just transition, for workforces, communities

and consumers, aiming for reliable, affordable and secure clean

energy resources, in eradicating energy poverty and supporting

economic growth.

COP27 delivered a breakthrough agreement, set out in the

‘Sharmel-Sheikh Implementation Plan’, that includes the creation

of a ‘Loss and Damage Fund' for vulnerable countries hit hard by

climate disasters and consistent with the overall theme of justice

and fairness.

Climate change, the energy transition and just transition will

continue to be topics of considerable national and international

debate in 2023, played out against a dicult geopolitical backdrop

that has underscored the importance of energy security as

anessential driver for economic growth and development.

Research shows that energy demand continues to increase and,

as widely accepted, oil & gas will continue to be a crucial part of

the global energy mix for decades to come. As we continue to

‘build a better a future through the responsible development of oil

and gas”, we will ensure these considerations continue to inform

our business strategy.

Tullow Oil plc

2022 Annual Report and Accounts

A balanced scorecard

Measuring our

performance

2022 scorecard



1. Safety 5.6/7.5%



2. Financial performance 1.9/5.0%



3. Production 6.3/10.0%



4. Business Plan implementation 5.6/7.5%



5. Sustainability 2.6/5.0%



6. Unlocking value 4.8/10.0%



7. Leadership effectiveness 3.2/5.0%



8. Total Shareholder Return 0/50.0%

Remuneration Report pages 73 to 97

The safe and responsible operation of our assets is always our

ﬁrst priority and through the implementation of safety

improvement plans, contractor engagement, active leadership

interventions and a strong reporting culture we have maintained

our strong EHS performance in 2022. There have been no

recordable injuries in 2022 and no Tier 1 incidents for loss of

primary containment (LOPC). Strong operational delivery was

also evident in our production eciency with TEN and Jubilee

achieving at least 97%. Actual production once normalised to

remove beneﬁt from pre-emption was close to matching our

scorecard target.

Actual operating cash ﬂow of $972 million was signiﬁcantly

higher than Budget thanks to the higher oil prices in 2022 but

for the scorecard KPI we normalised back to our Budget price

assumption. This means the KPI focused on cost and working

capital management. As a result, our normalised OCF was

$557million resulting in meeting our scorecard target.

The Business Plan implementation KPI tracks our delivery of

the capital investment in the Budget (what percentage of the

work programme have we delivered?) and whether we have

delivered it on cost (have we adhered to the Budget costs?).

Wedelivered 95% of the Budget work programme for a spend

of $362 million. An additional $38 million of capital spend was

for additional projects approved post the Budget, e.g. the extra

wells drilled on Jubilee because we were ahead of schedule.

The sustainability KPI was measured against a series of

milestones which tracked our delivery against several key

themes, shared prosperity, local content, employee engagement,

corporate governance, and progress of our Net Zero plans.

The unlocking value KPI was based around delivery of six

critical actions. Highlights include completing the pre-emption

of the sale by Occidental Petroleum to Kosmos of its interests

in the Jubilee and TEN ﬁelds in early 2022, together with the

successful takeover of operatorship of the Jubilee FPSO in

mid2022.

KPI Performance

No recordable injuries in 2022, maximum score achieved

No LOPCs at Tier 1. One Tier 2 LOPC

Normalised operating cash ﬂow (OCF) at $557 million

Group oil production normalised for pre-emption at 57.4 kbopd

Jubilee production eciency at 97%; TEN production eciency at 98%

95% of the 2022 capex work programme completed at spend totalling $362 million

Implementing plan to eliminate our routine ﬂaring by 2025 and being Net Zero on our Scope 1 and 2 net equity

emissionsby 2030

Delivery of a number of critical actions to unlock value in 2022 and drive future growth

In 2022, the leadership team has continued to work collaboratively and together with a highly energised workforce,

delivered strong performance across the core business activities and made solid progress in the critical areas identiﬁed

tounlock value. Together with strong support from the Board in the year, the leadership team continued to position the

company for sustainable success

TSR position is bottom quartile

1. Safety

2. Financial performance

3. Production

4. Business Plan implementation

5. Sustainability

6. Unlocking value

7. Leadership effectiveness

8. Total Shareholder Return

Our scorecard aligns both executive pay and

employees’ performance-related pay to Key

Performance Indicators (KPIs) measuring our

performance across a range of operational,

ﬁnancial and non-ﬁnancial measures.

6.3/10.0%

5.6/7.5%

2.6/5.0%

3.2/5.0%

0/50.0%

4.8/10.0%

5.6/7.5%

1.9/5.0%

Tullow Oil plc

2022 Annual Report and Accounts

Financial statements Supplementary informationStrategic Report Governance Report

2023 scorecard



1. Safety 7.5%



2. Financial performance 5.0%



3. Production 10.0%



4. Business Plan implementation 7.5%



5. Embedding sustainability 5.0%



6. Unlocking value 10.0%



7. Leadership effectiveness 5.0%



8. Total Shareholder Return 50.0%

Remuneration Report pages 73 to 97

The 2023 scorecard remains largely the same as the 2022

scorecard as it reﬂects a focus on performance with clear

output KPIs at the Group level balanced with a series of input

targets across all other levels of the business. It ensures safety

is prioritised alongside operational targets, and balances

short-term production targets with longer-term business

value, Business Plan implementation and leadership to stabilise

and then grow our business, whilst delivering a robust

response to sustainability.

With input from the Extended Leadership Team and the

Remuneration Committee, we have updated the critical actions

for the 2023 unlocking value section whereby operations and

maintenance (O&M) transformation and Ghana pre-emption

are replaced by delivering enhancement in TEN value and

deleveraging/positioning for future reﬁnancing.

KPI Performance

Total recordable incident rate (TRIR) of between 0.77 and 0.48; lossofprimarycontainment (LOPC) Tier 1 and 2 as per

IOGP deﬁnition of1orless at Tier 2 and 0 at Tier 1

Group underlying operating cash ﬂow (OCF) of $726 million to $888 million ataBrent price of $80/bbl

58–64 kbopd produced; Jubilee production eciency of 94–98%; TEN production eciency of 95–99%

Achieve 100% agreed work programme for $423 million agreed budget

Delivery of key actions in progressing our Net Zero Plan, socio-economic contribution, employee engagement

andembedding strong governance

Focus on unlocking value through a number of critical actions discussed below

Organisation is positioned for sustainable success

Creating shareholder value

1. Safety

2. Financial performance

3. Production

4. Business Plan implementation

5. Embedding sustainability

6. Unlocking value

7. Leadership effectiveness

8. Total Shareholder Return

50.0%

7.5%

5.0%

10.0%

7.5%

10.0%

5.0%

Finally, the Board made a judgement on the effectiveness

ofthe Senior Leadership Team over the year. It considered

several factors, including the strength and cohesiveness of

theleadership team, a clear strategy being set and understood

across the organisation, the engagement of the workforce and

the successful delivery of business activities in 2022. The Board

concluded that the strong performance in 2022 has been

driven by the unrelenting focus on business performance

andthe hard work and dedication of the entire Tullow team,

resulting in a score of 3.2%.

1. TSR is only applicable to CEO and CFO remuneration.

Remuneration for the wider workforce is based on all

otherKPIs.

Tullow Oil plc

2022 Annual Report and Accounts

“

We look for every opportunity to

improve our production rates from

our well stock; producing safely

and sustainably while minimising

losses is key to achieving

operational excellence.

”

Gabrielle Acquah

Senior Petroleum Engineer

Operational excellence:

Maximising asset

performance, reliability

andsafety

Strategy in action

Tullow Oil plc

2022 Annual Report and Accounts

Financial statements Supplementary informationStrategic Report Governance Report

Gabrielle Acquah

Senior Petroleum Engineer

What are the key responsibilities of yourrole?

I oversee surveillance and production optimiation of the TEN ﬁeld, offshore Ghana. Surveillance

requires nearly round-the clock monitoring of both producer and injector wells using high

frequency real-time data toensure performance is in line with expectations and within safe

operating limits. My team, which consists of production technology, reservoir engineering, facilities

engineering, and production chemistry optimise oil production by actively seeking andmodelling

opportunities both upstream and downstream of the wells. This is done in collaboration with the

offshore team, with the aim of increasing ﬁeld production and injection. We also carry out

investigations to ﬁnd causes of any anomalous behaviours when they occur and try to ﬁnd ways to

resolve them. Another key area is production loss management which identiﬁes the major causes

of production losses thereby presenting an opportunity to address them when possible and

ultimately improve performance.

How does your role contribute to achieving operational excellence?

The TEN ﬁeld accounts for 18 % of Tullow’s net production. Therefore, ensuring that the ﬁeld is

producing the most that it can daily in a safe and sustainable manner impacts the company’s

bottom line. We look for every opportunity to improve our production rates from our well stock;

producing safely and sustainably while minimising losses is key to achieving operational excellence.

It is important to note that this does not happen without having a high facility uptime on the FPSO

which the offshore team strives to achieve everyday.

How has your career developed at Tullow?

I joined the Tullow Production Technology team in December 2011 after working with MODEC

oncontract. I worked on the Jubilee Field in the production space up until 2016 and moved into an

operations reservoir engineer role for the TEN ﬁeld. In 2018, I moved to London on a two-year assignment

continuing in my role as a TEN reservoir engineer, however, with a new focus on future opportunities.

Idid a lot of the initial modelling work for the Enyenra South Project. Following that I had a brief stint

working on the Kenya Early Oil Pilot Scheme (EOPS). In mid-2020, Icame back to Ghana and joined

the Well, Reservoir and Facilities Management team looking after TEN operations.

What achievements are you most proud of in 2022?

The TEN ﬁeld was on a steep decline entering 2022. There was an obvious concern on how we were

going to mitigate this without any new wells being drilled early in the year. Despite the challenges

the team carried out some signiﬁcant optimisations which resulted in production gains and slowed

down the decline ahead of the new well, En21-P that came online in September 2022. Iwas honoured

to be nominated for the CEO Star Award for one of these opportunities that werecarried out.

Q&A

Gabrielle's story

Tullow Oil plc

2022 Annual Report and Accounts

Operations review

A review of our operations

Ghana

Jubilee

Production from the Jubilee ﬁeld increased from an average

of74.9 kbopd (26.6 kbopd net) in 2021 to 83.6 kbopd (31.9 kbopd

net) in 2022. Continued excellent operational eciency of c.97%

(2021: c.98%) was achieved and production was supported by

four new wells (one producer and three water injectors) coming

online ahead of schedule due to outstanding drilling and

completions performance.

Two wells were drilled in the Jubilee South East area in the

second half of 2022 and a third well in January 2023. Primary

target reservoir results are in line with expectations, but with

upside from deeper appraisal target reservoirs that encountered

oil resources for future development. These wells will commence

production in the second half of the year after the installation and

tie-in to the Jubilee South East Project subsea infrastructure, in

line with the initial project schedule. The completion of the

Jubilee South East Project will mark the end of the current major

infrastructure spend in the Jubilee area with the majority of

near-term capex expected to be focused on drilling and

completing new wells.

First oil from the Jubilee South East project will be a signiﬁcant

milestone, bringing previously undeveloped reserves to production

and helping deﬁne future growth opportunities in the Jubilee area.

This project, which was delivered through a multi-national

supply chain effort, is being delivered on budget despite the

inﬂationary environment and challenges associated with

COVID-19 during 2020-22, highlighting Tullow’s project

management strengths and ability to integrate deliverables

across a global team.

In 2023, Jubilee oil production is expected to average c.95 kbopd

(c.37 kbopd net), with ﬁve wells expected to come online, starting

in the middle of the year. Gross oil production from the Jubilee

ﬁeld is expected to exceed 100 kbopd once all these wells have

been brought online. This rate increase is also enabled by the

successful execution of expansion work on the Jubilee FPSO,

increasing water and gas handling capacity to support the

additional well stock coming online. The focus on operational

excellence in production, drilling and major project delivery in

recent years hasyielded appreciable value and will continue to

be an area ofleverage for Tullow.

Production, reserves and resources

In 2022, Group working interest production averaged 61.1 kboepd,

in line with guidance following pre-emption of the Deep Water

Tano component of the Kosmos Energy/Occidental Petroleum

Ghana transaction.

Group working interest production guidance for 2023 is 58-64

kboepd, excluding 19 bcf of gas sold under the Interim Gas Sales

Agreement and any additional volumes of gas sold during the

course of the year. The main driver of production growth in 2023

is expected to be the Jubilee South East development which is

dueonstream in the second half of the year. The near-term focus

on TEN is to sustain the strong operational uptime and improve

gas handling on the FPSO this year, which will facilitate a

reduction in ﬂaring and increased gas injection to support oil

production. Improvements on the gas processing facilities will

be implemented during a planned maintenance shutdown,

scheduled for the third quarter of the year. A two week FPSO

maintenance shut-down will impact production from TEN.

Production from the non-operated portfolio will be supported by

new wells planned at Tchatamba, Ezanga and Etame.

Group average working interest production

FY 2022

(kboepd)

FY 2023

range

(kboepd)

Ghana 44.4 48

Jubilee 31.9 37

TEN 12.5 11

Non-operated portfolio 16.7 14

Gabon 14.9 13

Côte d’Ivoire 1.8 1

Group 61.1 58–64

The Group’s audited 2P reserves are 229 mmboe at the end

of2022 (2021: 231 mmboe). Group reserves replacement was

c.90% as a result of the additional equity acquired through the

pre-emptive transaction in Ghana and other positive revisions

including transfers from contingentresources, offset by

reduction in TEN due to greater than expected base decline

inEnyenra and the two Notmme riser base area well results.

Asat 31 December 2022, the audited 2P NPV10 was $3,895 million

(2021: $3,633 million).

The Group’s audited 2C resources reduced to 605mmboe at

theend of 2022 (2021: 625mmboe). This was principally due

totheevaluation of several projects in the TEN development

area, some of which have been upgraded from contingent

resources to reserves.

Tullow Oil plc

2022 Annual Report and Accounts

Financial statements Supplementary informationStrategic Report Governance Report

TEN

Production from the TEN ﬁelds averaged 23.6 kbopd (12.5 kbopd

net) in 2022. Continued excellent operational eciency of c.98%

(2021: c.97%) was achieved with overall production at the lower

end of guidance.

Ntomme gross production averaged 16.8 kbopd for the full year.

No new wells were brought online during the year at Ntomme,

but pressure support from existing gas and water injection wells

resulted in steady production. Enyenra gross production

averaged 6.8 kbopd for the full year, supported strongly in the

fourth quarter by a new production well, which was brought

online in September 2022. Currently producing 3 kbopd, this well

and a new water injector brought online in December2022, will

contribute to supporting production in 2023.

Two wells drilled in the Ntomme riser base area did not

encounter economically developable resources and will not be

completed in 2023 as originally intended, removing c.2.5 kbopd

net from previously expected 2023 production.

The longer term plan for TEN is to monetise its signiﬁcant

remaining resources through inﬁll drilling, phased development

of new areas near existing infrastructure, development of the

signiﬁcant gas resources and drilling of prospective resources.

Arestructuring of the FPSO cost base is under evaluation to

enable sustained cost eciency in production operations.

Tullowexpects to submit a plan of development to the

Government of Ghana later this year.

In 2023, TEN production is expected to average c.20 kbopd

(c.11kbopd net), including the planned two-week maintenance

shutdown. No new wells are planned to be added in TEN in 2023.

Jubilee operations and maintenance transformation

The transition of operatorship to Tullow on the Jubilee FPSO took

place in July 2022. This is a major step in Tullow's transformation

to a leading low-cost deep-water operator, and is expected to

deliver sustainable improvements in safety, reliability and cost.

Following the transition, which is supported by a comprehensive

multi-year transformation plan, FPSO uptime averaged c.99% in

the second half of 2022, compared to c.95% in the ﬁrst half.

Operations and maintenance (O&M) costs were c.30% lower in

the second half of the year compared to the ﬁrst, and 2023 full

year O&M costs are expected to be c.23% lower than in 2021,

demonstrating the sustainability of the structural changes

delivered through the transformation, helping mitigate the

impact of inﬂation through the supply chain, and allowing for

sustained prioritisation of FPSO upkeep activities which are

important for maintaining the FPSO's top-tier performance for

the long-term.

Gas Commercialisation

In December 2022, an Interim Gas Sales Agreement for 19 bcf

gross of Jubilee gas was executed, utilising the price for TEN

associated gas referenced in the 2017 TEN Gas Sales Agreement

which was $50c/mmbtu. The 19 bcf is expected to have been

supplied by the middle of the year at an anticipated export rate in

excess of 100 mmscfpd, adding c.7 kboepd net production during

the ﬁrst half of the year. Further gas export will be contingent on

reaching agreement on acceptable commercial terms for

futurevolumes.

Tax exposure

As announced on 14 February 2023, throughout 2021 and 2022,

Tullow has received revised and new tax assessments from

theGhana Revenue Authority (GRA). Tullow believes these

assessments are without merit and ﬁled requests for arbitration

with the International Chamber of Commerce in London, in

accordance with the dispute resolution process set out in the

Petroleum Agreements which govern Tullow Ghana Limited's

(TGL's) activities in Ghana. Notwithstanding this formal step,

Tullow intends to continue toengage with the Government of

Ghana, including the GRA, withthe aim of resolving these

disputes on a mutually acceptable basis.

Tullow Oil plc

2022 Annual Report and Accounts

Operations review continued

Non-operated portfolio

Production from Tullow’s non-operated portfolio in Gabon and

Côte d’Ivoire averaged 16.7 kboepd net in 2022 (2021: 17.2 kboepd

net), supported by new wells brought online in Tchatamba,

Ezanga and Etame. Capital expenditure in Gabon and Côte

d’Ivoire in 2022 was c.$43 million net, with approximately 60%

allocated to infrastructure projects, including the tie-back of the

Wamba discovery for a long-term production test.

In Côte d’Ivoire, remediation work on the Espoir FPSO will

continue through 2023. A 4D seismic survey will be acquired over

the licence to support the upcoming inﬁll development drilling

campaign and mature other future investment projects.

Net production from the non-operated portfolio is expected to

average c.14 kboepd in 2023, which includes production from the

Wamba discovery long-term production test which will continue

throughout 2023. Total capital expenditure is expected to be

c.$60 million net, of which c.75% will be allocated to infrastructure

projects to support future developments and production. The

remaining investment will be in new wells at the Ezanga Complex

and workovers across the portfolio to sustain production levels.

Decommissioning

In the UK and Mauritania, decommissioning expenditure was

c.$72 million in 2022 and is expected to be c.$90 million in 2023,

which is the last year of signiﬁcant decommissioning spend.

Atthe end of 2023, it is expected that less than $30 million of

decommissioning liabilities will remain for the two countries.

In 2022, UK decommissioning activity included the removal

offour platforms (three at the Murdoch Hub and the Ketch

platform). Removal of the Ketch pipeline commenced in 2022

and is expected to complete in the second half of 2023. Eleven

Schooner wells were successfully plugged and abandoned.

Plugging and abandonment work has also begun at the Boulton

ﬁeld, as part of an eight well campaign in the CMS area. In Mauritania,

the Tullow operated Banda and Tiof decommissioning campaign

commenced in December 2022 and is expected to complete by

the middle of the year.

Starting in 2023, c.$20 million will be required to be paid annually

into escrow for future decommissioning of currently producing

assets in Ghana and parts of the non-operated portfolio.

Kenya

Engagements to secure a strategic partner for the development

project in Kenya are ongoing.

In March 2023, Tullow and its JVPartners submitted an updated

Field Development Plan to the Ministry of Energy and Petroleum

and the Energy and Petroleum Regulatory Commission Authority,

for their approval. This is currently under review by the

relevantauthorities.

Kenya continues to remain an important asset in Tullow’s

development portfolio, with the potential to add material

resources and create value for shareholders.

Exploration

Capital expenditure on exploration and appraisal activities was

c.$45million in 2022 and is expected to be c.$30 million in2023.

In Guyana, the operator of the Kanuku licence (Tullow 37.5%), Repsol,

drilled the Beebei-Potaro prospect which encountered water

bearing reservoirs, and the well was plugged and abandoned.

In Gabon, Tullow, together with JV partner Perenco, is focused on

maturing the prospective resource base within the Simba

licence, where several low-risk and compelling investment

options adjacent to infrastructure have been high-graded for

near-term drilling programmes.

In Côte d’Ivoire, Tullow, together with its JV Partner PetroCi,

haselected to proceed into the second exploration phase in

Block CI-524 and is maturing a number of drilling candidates.

Tullow has enhanced its strategic position in the Tano Basin,

where it has a differentiated subsurface understanding, with

a90% interest in a new offshore exploration licence (CI-803),

which isadjacent to Block CI-524 and also to Tullow’s producing

ﬁelds in Ghana.

In the emerging basins of Argentina and Guyana, Tullow continues

to purse activities to unlock value from its signiﬁcant prospective

resource base. A two year extension has been secured in Block

MLO-122 in Argentina.

Proposed Merger

On 1 June 2022, Tullow entered into an agreement for a proposed

all-share merger with Capricorn Energy PLC ("Capricorn").

Theaim of the proposed merger was to create a leading

Africanenergy company, and it would have enabled Tullow to

accelerate its deleveraging trajectory and investment in growth.

On 29September 2022, Tullow noted the announcement released

by Capricorn in connection with its proposed combination with

NewMed Energy Limited Partnership. Tullow’s Board decided

that it would not increase the value of Tullow's offer for Capricorn

or to elect to implement its offer by way of a contractual offer,

and later conﬁrmed that it will no longer proceed with the

proposed merger.