Tullow FY average production 40,400 BOE/d, est. 40,220

Tullow FY average production 40,400 BOE/d, est. 40,220

Tullow Oil Reports 2025 Average Production of 40,400 BOE/d, Adjusts Guidance Amid Asset Sales

Tullow Oil plc (LSE: TLW) reported an average production of 40,400 barrels of oil equivalent per day in 2025, aligning with its revised full-year guidance of 40,000–45,000 BOE/d. This represents a decline from its prior projection of 50,000–55,000 BOE/d, primarily due to the divestiture of its Gabonese assets, which contributed 10,000 BOE/d in the first half of 2025. Excluding Gabon, first-half production averaged 40.6 kboepd, reflecting operational challenges and maintenance at the Jubilee field in Ghana.

The company's strategic focus on deleveraging and operational optimization has driven key actions, including the $300 million sale of its Gabon operations in July 2025 and a $120 million agreement for its Kenyan assets. These disposals have reduced net debt to $1.6 billion as of June 30, 2025, with cash gearing at 1.9x net debt/EBITDAX. Tullow also secured a $150 million Revolving Credit Facility repayment using Gabon sale proceeds, further strengthening liquidity.

Production challenges at the Jubilee field prompted a drilling campaign to address underperformance. The first of two planned 2025 production wells was brought online in July, with better-than-expected net pay encountered during drilling. The company plans four additional Jubilee wells in 2026, supported by 4D seismic data and an Ocean Bottom Node survey.

Financially, Tullow posted a first-half loss of $80 million from continuing operations, compared to a $106 million profit in the same period in 2024, driven by lower revenues, impairment charges, and higher costs. Full-year free cash flow guidance was adjusted to $300 million at $65/bbl, incorporating $380 million in disposal proceeds and operational delays.

Looking ahead, Tullow remains focused on refinancing its capital structure, reducing costs by $50 million over three years, and extending production licenses in Ghana to 2040, which is expected to boost reserves. The company aims to achieve net debt below $1 billion and cash gearing under 1x in the near term.

(https://www.tullowoil.com/media/press-releases/2025-half-year-results/): Tullow Oil plc, 2025 Half Year Results
(https://uk.finance.yahoo.com/news/uks-tullow-oil-cuts-annual-063010168.html): Reuters, UK Finance Yahoo News