Tullow Oil reports $110m Loss in 2023 amid challenges in TEN Fields
London-based oil exploration company Tullow Oil disclosed a loss of $110 million for the fiscal year 2023.
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This announcement was made on March 6, 2024, following the release of the company's full-year results.
The loss is attributed to an impairment related to the Tweneboa, Enyenra, and Ntomme (TEN) development, where fields are experiencing a decline in productivity.
Tullow's financial setback contrasts with the $49 million profit recorded in 2022. Despite the decline in profits, the company's revenue for 2023 remained substantial at $1.6 billion compared to $1.7 billion in the previous year.
The Chief Executive Officer of Tullow Oil, Rahul Dhir characterised 2023 as a year marked by significant achievements. These achievements include the initiation of the Jubilee South East project, contributing to material production growth from the core operated field.
Mr. Dhir highlighted the establishment of a new revenue stream through the sale of associated gas in Ghana and the growth of reserves in Gabon through license extensions.
He emphasized the company's ability to generate free cash flow ahead of expectations despite challenges such as lower oil prices. Additionally, Tullow Oil secured a $400 million debt facility agreement with Glencore, demonstrating its access to long-term capital.
Looking ahead, Dhir reaffirmed the company's commitment to operational excellence, capital efficiency, and strategic investments to drive growth. He expressed confidence in Tullow's ability to create substantial value for investors, host nations, and stakeholders.
Developments
Tullow Oil highlighted significant developments in Ghana, particularly the Jubilee South East project's production milestone in July 2023. This event marked a notable increase in field production, with average daily rates surging by 30% in the second half of the year compared to the first half.
Gross oil production from the Jubilee field averaged 83.4 thousand barrels of oil per day (32.5 thousand barrels of oil per day net) in 2023.
Looking forward, Tullow Oil anticipates the commencement of five new Jubilee wells in 2024, comprising three producers and two water injectors, further enhancing production capabilities.
