Tullow Oil profit drops 87% on lower output and Ghana payment delays

Average production came in at 40.4 thousand barrels of oil equivalent per day (kboepd) in 2025, compared with 51.5 kboepd in 2024. For 2026, Tullow expects output to be at the higher end of the 34–42 kboepd range, including about 6 kboepd of gas, after a rebound to 43.4 kboepd in the first quarter of 2026, driven by new high-performing wells at the Jubilee field.

A deep restructuring

Heavily indebted, Tullow Oil launched a capital overhaul and sold non-core assets in Gabon and Kenya for a combined $347 million, refocusing the company on its West African operations but mechanically reducing its production base. Annual revenue reached $847 million, but profitability from continuing operations remained under pressure.

Against a backdrop of oil price volatility, as highlighted by tensions in the Strait of Hormuz, the London-listed group nevertheless generated $99 million in free cash flow and cut its net debt to $1.35 billion. The West African oil sector also faces maritime security challenges, including suspected illicit oil transfers to North Korea, underscoring the complex operating environment.

Focus on Ghana and 2026 outlook

The Ghanaian parliament approved the extension of petroleum agreements for the Jubilee and TEN fields until 2040, providing long-term visibility on the group’s key assets. Tullow also announced the acquisition of the TEN field’s floating production, storage and offloading vessel for $205 million, with payment due in the first quarter of 2027, aiming to eliminate lease costs and realise synergies with Jubilee.

According to the company, these initiatives and the production rebound seen in early 2026 reflect a drive to stabilise after a difficult 2025. However, delayed payments from the Ghanaian government continue to affect cash flow and remain a concern. Tullow Oil aims to leverage its Ghanaian assets to return to stronger growth.