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Jubilee field First Oil delivered

Major oil discoveries in Ghana and Sierra Leone

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Results summary

In 2010, Tullow demonstrated continued exploration and appraisal success and delivered first production from the Jubilee development in record time. The reported financial results for 2010 are materially ahead of 2009 and broadly in line with the market’s expectations. 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 strategy and continue to grow the business.

  2010 2009 Change
Sales revenue ($m) 1,090 916 +19%
Operating profit ($m) 235 151 +56%
Profit before tax ($m) 152 33 +361%
Profit after tax ($m) 73 31 +137%
Basic earnings per share (cents) 6.1 3.2 +90%
Final dividend per share (pence) 4.0 4.0 0%
Operating cash flow before working capital ($m) 762 588 +30%
Production (boepd, working interest basis) 58,100 58,300 0%
Realised oil price ($ per bbl) 78.0 60.0 +30%
Realised gas price (pence per therm) 42.0 39.3 +7%


Key highlights

  • Jubilee production offshore Ghana achieved in November, some 40 months after discovery.
  • Working interest production averaged 58,100 bopd; three year reserves replacement ratio of 250%.
  • Exceptional E&A performance: 83% success ratio in 2010; seven successes year-to-date in 2011.
  • Important Equatorial Atlantic discoveries: Enyenra & Teak offshore Ghana; Mercury offshore Sierra Leone.
  • A 50% operated interest in six licences covering 100,000 sq km was secured in Kenya and Ethiopia.
  • A 40‑well E&A campaign including basin-opening wells is planned for 2011.
  • Financial results up on 2009 and will be transformed in 2011 by Jubilee production.
  • Balance sheet strengthened during the year through additional debt and equity totalling $2.35 billion.


“With First Oil in Ghana and an excellent exploration and appraisal success rate, 2010 was undoubtedly a transformational year for Tullow. This contrasted with slower progress on our agreed farm-down in Uganda. However, good progress has recently been made towards gaining Government approval and establishing a strong fiscal and legal framework for the successful development of the basin. 2011 has started very well with production increasing from Jubilee and continued exploration and appraisal success. With a diverse 40‑well E&A campaign planned for 2011, we look forward to another year of significant progress.”

Presentation in London, Webcast and Conference Calls: Details are available on page 26 of the full year results PDF (0.56Mb) and in the Results centre.