Tullow Oil H1 2022 profit hits US$264 million

Tullow Oil’s half year profits after tax reached US$264 million ending June 2022.

This represents about 183 percent increase over what Tullow Oil posted in the first half of 2021.

Meanwhile, its gross profit stood at $620 million ending June 2022.

The numbers were captured in Tullow Oil’s half year profits released by the company on 14 September 2022.

The report show that Tullow Oil has “turn the corner” when it comes to financials over the past one year. The company has also witnessed some significant growth in its operations over the past year as well.

Tullow’s Revenue also reached $845 million accrued from an oil price of $87 a barrel.

The oil exploration firm reported spending $380 million on investment and decommissioning for the first six months of 2022.

The report also showed a strong pickup from the company’s production of oil fields in the first six months of this year.

Tullow Oil in the report noted that its Group working interest production for the first half of 2022 averaged 60.9 thousand barrels of oil equivalent per day (kboepd), in line with expectations.

Gross production from the Jubilee field averaged 82.4 kbopd in the first half of the year, representing an increase of more than 15% compared to the first half of 2021.

This is due to good well and operational performance, which included the successful completion of the planned, biennial maintenance shutdown of the Jubilee FPSO in May.

Full year net production guidance for Jubilee was 32 kbopd while gross production from the TEN field averaged 24.3 kbopd in the first half of the year, in line with expectations.

Full year net production guidance for TEN is 13kbopd, with the expectation of an increase in production rates when the En21-P well comes on-stream in the fourth quarter.

Tullow Oil also announced that, its drilling programme which started in April 2021, is ahead of schedule, having completed two previous drilled wells and completed another three wells.

A further six wells are expected to be drilled and two of these completed by year-end. According to Tullow Oil, it spent about $50 million on each well, adding that “this is 10 percent more than the average cost for these wells that it had worked on in the country’s oil fields”

Tullow Oil also disclosed that the current pace of drilling continues, the next phase of drilling at Jubilee, which includes wells to be tied into Jubilee South-East infrastructure, is expected to be accelerated into the fourth quarter of 2022.
Tullow Oil also announced that it completed the takeover of operations and Maintenance of the Jubilee FPSO in June this year from MODEC.

The Oil exploration firm noted that this will help “to deliver sustained FPSO safety and reliability performance for the long term, as well as help deliver planned reductions in the operating cost base and emissions”.

Chief Executive of Tullow Oil Rahul Dhir noted that a turnaround of Tullow gained momentum in the first half of 2022, with solid production from its West African portfolio driving stronger financial performance.

Mr. Dhir also revealed that “our drilling programme has been very efficient and at current performance levels will be able to deliver its planned programme of wells through next year with just one rig.”

Tullow Oil disclosed that it expects to complete the merger in the last quarter of this year.

Tullow Oil noted that “the recommended merger in the fourth quarter, ahead of a shareholder vote, followed by completion of the transaction before the end of the year.”