Brand Focus Africa can confirm that Tullow Oil will resume Ghana drilling post-tax dispute, boosting production.
Per report earlier by the publication few days ago on Tullow’s Strong financials, safety, and efficiency, Brand Focus Africa believes this has reinforced confidence in Ghana’s energy sector as well.
Tullow Oil has also confirmed to Brand Focus Africa, plans to restart drilling operations in Ghana‘s oilfields in May 2025, following the successful resolution of a long-standing tax arbitration with the Ghanaian government.
According to Brand Focus Africa, the settlement of the Ghana Branch Profits Remittance Tax dispute eliminates a US$320 million contingent liability and reinforces the integrity of Tullow’s petroleum agreements in the country.
However, according to Brand Focus Africa, the announcement to begin operations was made ahead of the company’s 2024 Full-Year Results, signaling a renewed focus on expanding its operations in Ghana.
Tullow oil emphasized that this development will strengthen its partnership with the government and contribute to Ghana’s growing role in West Africa ‘s energy landscape.
Looking at the performance for the 2024 fiscal year, Tullow reported revenues of US$1.5 billion, with an average realized oil price of US$80.2 per barrel.
The company successfully reduced its net debt to US$1.45 billion, improving its gearing ratio to 1.3 times, demonstrating strong fiscal discipline and operational efficiency.
It’s working interest production for the year averaged 61.2 thousand barrels of oil equivalent per day, including 6.6 kboepd of gas.
The Jubilee oil field remained a key contributor, producing an estimated 33.9 thousand barrels of oil per day (kbopd) net, with a gross output of 87.0 kbopd. Meanwhile, the TEN field delivered 10.2 kbopd net which is gross 18.5 kbopd.
Furthermore, Tullow oil successfully brought five new wells online at the Jubilee field, three producers and two water injectors, completing the drilling program approximately six months ahead of schedule.
Notably, these operations were executed with no recordable safety incidents, underscoring the company’s commitment to safety and efficiency.
Also, the Floating Production Storage and Offloading (FPSO) systems at Jubilee and TEN fields achieved an impressive average uptime of 97% throughout the year.
Despite a reduction in overall reserves, which reflected 22.4 million barrels of oil equivalent (mmboe) in group production and a downward revision at the Jubilee field, the estimated oil-in-place volume remains unchanged.
Reserves in the TEN field saw an upward revision, bolstered by significant cost reductions, particularly related to the Floating Production System (FPS).
Ultimately, Tullow’s decision to resume drilling in Ghana is expected to boost the nation’s oil production capacity and reinforce its position as a leading energy producer in West Africa.
The company’s continued investment signals confidence in Ghana’s regulatory environment and highlights the strategic importance of the country’s oil and gas sector.
Source: Brand Focus Africa
