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Tullow Oil to halt drilling operations in Ghana

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Tullow Oil and its Joint Venture Partners plan to suspend drilling activities in Ghana later in 2024, relying on existing well stock to maintain production at Jubilee and TEN as output declines. Drilling is slated to resume in 2025, with the procurement process for a new rig set to begin in 2024.

According to a statement released ahead of the Group’s 2023 full-year results, scheduled for announcement on March 6, 2024, Tullow expects five Jubilee wells—comprising three producers and two water injectors—to commence operations in 2024. This marks the conclusion of the drilling program’s activities, completing approximately six months ahead of schedule due to outstanding drilling performance.

Rahul Dhir, Chief Executive of Tullow, expressed confidence in the company’s trajectory, citing the successful execution of Tullow’s business plan in 2023 as a significant milestone. Dhir anticipates Tullow generating approximately $600 million of free cash flow over the next two years, towards achieving its target of approximately $800 million of free cash flow from 2023 to 2025, with oil prices assumed at $80 per barrel.

Furthermore, Tullow highlighted the debt facility secured with Glencore as validation of its business plan, with no significant uncovered debt maturities until May 2026. The company remains focused on leveraging its assets for production growth while emphasizing operational excellence and capital discipline.

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