Tullow Oil’s first half of 2025 has been anything but smooth sailing. The energy giant, which has significant operations in Ghana, has posted a $61 million loss for the first six months of the year — a sharp turn from the $196 million profit it enjoyed in the same period of 2024.
A combination of falling oil prices, lower production, and substantial maintenance costs has weighed heavily on the company’s books.
The Numbers Tell the Story
Tullow’s revenue for the first half fell to $524 million, down from $759 million last year. Gross profit also took a hit, shrinking to $218 million from $460 million.
Oil prices didn’t help either — the company’s average realised price dropped from $77.7 per barrel to $69.0.
Production was also lower, averaging 50,000 barrels of oil equivalent per day (boepd) compared to 63,700 boepd a year earlier.
When you strip out the company’s Gabon operations (which it has now sold), the figures are even starker:
- Revenue: $411 million (down from $666 million)
- Production: 40,600 boepd (down from 53,500 boepd)
- Loss after tax: $80 million (compared to a $106 million profit last year)
Cash Flow Squeeze
The company also faced a negative free cash flow of $188 million.
This was largely due to the timing of tax payments and maintenance costs at the Jubilee field.
Net debt now stands at $1.6 billion — a slight drop from $1.7 billion — but the company’s liquidity headroom has shrunk to $200 million, down from $700 million a year ago.
What’s the Plan Going Forward?
Interim CEO and CFO Richard Miller says the company is sticking to its roadmap, which focuses on:
- Refinancing its capital structure
- Improving production efficiency
- Building up reserves
- Completing the sale of its Kenyan assets
There’s also a significant development on the horizon — Tullow has signed an agreement with the Government of Ghana to extend production licences for the Jubilee and TEN fields until 2040.
This could unlock more reserves and provide a longer-term production boost.
Operational Updates
- Jubilee Field: Drilling has resumed, and the first of two planned wells for 2025 is already producing — with better-than-expected results.
- Seismic Survey: An Ocean Bottom Node survey is scheduled for the fourth quarter to improve future drilling strategies.
- Asset Sales: Tullow has completed the sale of its Gabon business for over $300 million and is finalising the sale of its Kenyan assets for at least $120 million.
Looking Ahead
Tullow expects full-year production to come in at 40,000–45,000 boepd (including approximately 6,000 boepd of gas) and aims to reduce net debt to around $1.1 billion by the end of 2025.
The next few months will be critical. With oil prices still under pressure and production recovery in progress, Tullow will need to execute its drilling plans and asset sales flawlessly to turn the tide.
