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Tullow Oil (Tullow) announces its Half Year results for the six months ended 30 June 2022.

Tullow will host a webcast presentation at 9am this morning, details of which can be found here.

Read the full statement here

Rahul Dhir, Chief Executive Officer, Tullow Oil plc, commented today:

“The turnaround of Tullow has gained momentum in the first half of 2022, with solid production from our West African portfolio driving stronger financial performance. We added material, unhedged production in Ghana through the pre-emption of the Kosmos-Oxy deal and took over the Operations & Maintenance (O&M) of the Jubilee FPSO to ensure that we can sustain the good operating performance and deliver further operating cost improvements. Our drilling programme has been very efficient and at current performance levels we will be able to deliver our planned programme of wells through next year with just one rig.

The Board of Tullow remains fully committed to the merger with Capricorn which continues to be recommended by both the Tullow and Capricorn Boards on the current terms. We firmly believe that the proposed merger has the potential for material value creation by implementing a combined business plan which accelerates investment in key projects and delivers very significant synergies.

We have a high quality, opportunity rich portfolio, a clear and disciplined growth strategy and an improving balance sheet. The Board looks to the future with confidence, and I look forward to sharing further details at a capital markets day.”

2022 First Half Results Summary

  • Group working interest production for the first half of 2022 averaged 60.9 kboepd, in line with expectations.
  • Ghanaian drilling programme ahead of schedule, having completed two previously drilled wells and drilled and completed another three wells. A further six wells are expected to be drilled and two of these completed by year-end.
  • Operational delivery: continued strong FPSO uptime (Jubilee c.95% and TEN c.99%), gas export (averaging c.90 mmscfd) and water injection (Jubilee c.170 kbwpd and TEN c.65 kbwpd).
  • Reserves of 242 million barrels as of 30 June, valued at c.$4.7 billion after hedging (c.$5.3 billion before hedging).1
  • Revenue of $846 million with realised oil price of $87/bbl after hedging; gross profit of $620 million; profit after tax of $264 million; underlying operating cash flow of $165 million.
  • First half free cash flow of $(205) million (negative), which includes an arbitration payment of $76 million (outflow), Uganda FID payment of $75 million (inflow) and Ghana pre-emption consideration of $126 million (outflow), but excludes the benefit of over $200 million revenue relating to two Ghana liftings, which took place in early June but for which cash was received shortly after 30 June 2022, on 1 and 5 July respectively.
  • Capital investment in the first half of 2022 was c.$156 million plus decommissioning costs of c.$29 million.
  • Net debt at 30 June 2022 of c.$2.3 billion; Gearing reduced to 1.9x net debt/EBITDAX; liquidity headroom and free cash of $0.6 billion.
  • Pre-emption of Deep Water Tano component of Kosmos Energy/Occidental Petroleum Ghana transaction successfully completed.
  • Announcement of recommended all-share combination of Tullow Oil plc and Capricorn Energy plc.

1 Note: The NPV10 valuation is calculated in accordance with the terms of the indenture for the issuance of 10.25% Senior Secured Notes due 2026 by Tullow Oil plc ("Tullow") dated 17 May 2021 (the "Indenture"). Tullow has agreed with the Takeover Panel that an independent valuation report prepared in accordance with Rule 29 of the City Code on Takeovers and Mergers (the "Takeover Code") will be included in the scheme document when published by Capricorn Energy plc in connection with its recommended merger with Tullow (the “Merger”). The publication of this independent reserves report in connection with the Merger, or any other independent reserves report required by the Takeover Code, should not be construed as a commitment to publish any such report in the future.

Key Financial Results


1H 2022

1H 2021

Sales revenue ($m)



Gross profit ($m)



Underlying cash operating cost per barrel ($/bbl)



Profit after tax ($m)



Free cash flow1 ($m)



Net debt1 ($m)



Gearing1 (times)



1 Excludes the benefit of over $200 million revenue relating to two Ghana liftings which took place in early June but for which cash was received shortly after 30 June 2022, on 1 and 5 July respectively.

2022 Guidance

  • Group working interest production narrowed to 60-64 kboepd.
  • Full year capital investment and decommissioning spend of c.$380 million and c.$100 million, respectively. Increase of $30 million associated with additional equity following pre-emption in Ghana.
  • Full year underlying operating cashflow expected to be c.$950 million, assuming an average oil price of $95/bbl. Post all costs, Tullow forecasts full year free cash flow of c.$200 million and gearing of <1.5x (net debt/EBITDAX) by year-end.
  • Free cash flow guidance includes the c.$75 million contingent consideration in relation to Tullow’s sale of its assets in Uganda to TotalEnergies, a payment of c.$76 million in relation to the arbitration award in favour of HiTec Vision regarding the purchase of Spring Energy in 2013 and a c.$126 million payment for the completion of the pre-emption related to the sale of Occidental Petroleum’s interests in the Jubilee and TEN fields in Ghana to Kosmos Energy.

Merger with Capricorn Energy

On 1 June 2022 Tullow announced that it had reached agreement with Capricorn Energy on the terms of an all-share merger to create a leading African energy company with a material and diversified asset base and a portfolio of investment opportunities delivering visible production growth. This recommended merger will enable the new company to develop and implement a new business plan that accelerates the development of new, material opportunities, realise meaningful cost synergies and deliver a combined group with robust cash generation and a resilient balance sheet. The combined group will also have a sustainable capital returns programme and a deep commitment to environmental stewardship, social investment, development of local content and its national workforces.

Tullow expects to host a Capital Markets Day for investors and issue a circular and prospectus in connection with the recommended merger in the fourth quarter, ahead of a shareholder vote, followed by completion of the transaction before the end of the year.


Net Zero 2030

Tullow is committed to becoming a Net Zero Company by 2030 on its Scope 1 and 2 emissions. This will be achieved through a number of decarbonising activities to eliminate flaring on its operated assets in Ghana, working closely with our partners to eliminate flaring on our non-operated assets, and pursuing a nature-based carbon removal programme to off-set hard to abate emissions.

Over the next few years, Tullow has defined plans to reduce its carbon emissions from its operations through an increase in the gas handling capacity on Jubilee and process modifications on TEN. These investments are included in the Group’s Business Plan and will put the Group on track to eliminate routine flaring in Ghana by 2025. Project Oil Kenya will align with Tullow’s Net Zero 2030 target through limiting carbon emissions and offsetting any hard to abate emissions. Through our Net Zero Task Force, Tullow also continues to track progress on initiatives being delivered, and funded, by non-operating partners.

To offset the residual hard-to-abate carbon emissions, progress continues to be made in identifying nature-based carbon removal projects. A Feasibility Study has been completed, identifying a significant scale opportunity covering the Western Transitional Zone in Ghana. Tullow is in the process of finalising a Letter of Intent with the Forestry Commission, detailing key activities and information requirements to inform a Final Investment Decision (FID).

For further information contact:

Tullow Oil plc

(+44 20 3249 9000)
George Cazenove (Media)
Robert Hellwig (Investors)
Matthew Evans (Investors)

(+44 20 3781 9244)
Billy Clegg
Georgia Edmonds
Rebecca Waterworth

Notes to Editors

Tullow Oil plc

Tullow is an independent oil & gas, exploration and production group which is quoted on the London, Irish and Ghanaian stock exchanges (symbol: TLW) and is a constituent of the FTSE250 index. The Group has interests in over 35 exploration and production licences across seven countries. In March 2021, Tullow committed to becoming Net Zero on its Scope 1 and 2 emissions by 2030.

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