Tullow Oil profit reaches over a billion dollars in 2022
Data published by oil exploration firm, Tullow has shown that the company ended 2022 with a significant increase in its profit.
The full year financial results ending December 2022 showed that the company’s Gross Profit reached $1.086 billion.
The statement showed that the earnings posted for last year, was quite significant compared to the 647 million recorded in 2021.
Details of the 2022 earnings
Tulllow Oil’s Profit After Tax reached $49 million compared to the loss of $81 million in 2021.
The company’s revenue also reached $1.7 billion, including hedge cost of $319 million, representing a 40 percent jump over what was recorded in 2021.
Tullow Oil CEO on 2022 Profits and Operations
The Chief Executive Officer of Tullow Oil, Rahul Dhir, noted that a high focus on cost control and a disciplined approach to operational efficiency has driven a very strong performance for the year, “with group production in line with guidance and expectations, delivering free cash flow of $267 million, lowering net debt to $1.9 billion and reducing cash gearing to 1.3x net debt to EBITDAX”.
“We have multiple catalysts to deliver further profitable growth and there is strong momentum across the portfolio with the commissioning of Jubilee South East on track for the second half of 2023, bringing undeveloped reserves online and Jubilee gross production to more than 100 kbopd before the end of the year,” Mr. Dhir added.
He announced that Tullow Oil is also preparing a plan of development to monetise the remaining resources at TEN.
“We have created a unique platform of assets and capability, including industry leading safety performance, which positions us strongly to create significant value for all our stakeholders.”
Operations on Jubilee and TEN oil fields
According to the data, production from the Jubilee field increased from an average of 74.9 kbopd (26.6 kbopd net) in 2021 to 83.6 kbopd (31.9 kbopd net) in 2022.
Tullow disclosed that continued excellent operational efficiency of c.97% (2021: c.98%) was achieved and production was supported by four new wells (one producer and three water injectors) coming online ahead of schedule due to outstanding drilling and completions performance.
Two wells were drilled in the Jubilee South East area in the second half of 2022 and a third well in January 2023.
Tollow is optimistic primary target reservoir results are in line with expectations, but with upside from deeper appraisal target reservoirs that encountered oil resources for future development.
“These wells will commence production in the second half of the year after the installation and tie-in to the Jubilee South East Project subsea infrastructure, in line with the initial project schedule”.
The completion of the Jubilee South East Project will mark the end of the current major infrastructure spend in the Jubilee area with the majority of near-term capex expected to be focused on drilling and completing new wells.
Operations on the TEN Field
Production from the TEN fields averaged 23.6 kbopd (12.5 kbopd net) in 2022.
Continued excellent operational efficiency of c.98% (2021: c.97%) was achieved with overall production at the lower end of guidance.
Ntomme gross production averaged 16.8 kbopd for the full year.
Tullow clarified that no new wells were brought online during the year at Ntomme, but pressure support from existing gas and water injection wells resulted in steady production.
2023 Outlook for Tullow Oil
Gross production from Jubilee is expected to increase to over 100 kbopd with four new wells at Jubilee South East and a further Jubilee producer onstream later this year.
Tullow Oil said it is also forecasting that capital expenditure will be pegged at $400 million.
The statement showed that Ghana will account for significant amount of the capital expenditure.
Source: Ghana News
