Tullow Oil plc said it would follow a transformational 2021 by delivering its long-term business plan for the company’s African oil and gas assets.
FINANCES
In its full year results for the year ended 31 December 2021, the company recorded revenue of $1,273 million (2020: $1,3960) with gross profit of $634m (2020: $403).
Loss after tax was $81m (2020: $1,222m) mainly due to exploration costs written off, impairments, restructuring costs and other provisions.
Free cash flow decreased to $245m (2020: $432m) while net debt fell slightly to $2,131m (2020: $2,376m).
Tullow received $133m from divestment of non-core interests in Equatorial Guinea and the Dussafu Marin permit in Gabon.
In May, the company completed refinancing its debt in May, with new $1.8 billion five-year senior secured notes, and a new undrawn $500 million revolving credit facility provides strong liquidity headroom.
Tullow achieved a 25% year-on-year reduction in administrative expenses to $64m.
Operating costs decreased to $269m (2020: $332m), driven by lower facilities operations and maintenance costs in Ghana, as well as asset disposals.
PRODUCTION
Group working interest production averaged 59.2 kboepd, in line with guidance with “notable production growth” from Jubilee in Ghana and Simba in Gabon.
Tullow recorded lower production than expected from TEN and Espoir.
| Group average working interest production | FY 2021 (kboepd) | FY 2022 range (kboepd) |
| Ghana1 | 42.1 | 39-42 |
| Jubilee | 26.6 | 28-30 |
| TEN | 15.5 | 11-12 |
| Non-operated portfolio2 | 17.2 | 16-19 |
| Group | 59.2 | 55-61 |
ESGs
Tullow has committed to becoming net zero on Scope 1 and 2 emissions by 2030 and to eliminate routine flaring in Ghana by 2025.
In September 2021, the company underlined its aim for responsible development of oil and gas resources and to build shared prosperity in the countries in which it operates.
During 2021, Tullow paid in total $234m to governments.
OPPORTUNITIES
Chief executive Rahul Dhir said that 2022 would see investment in new infrastructure and new wells at the flagship Jubilee field.
The company will also take on the operation and maintenance of the FPSO.
“At TEN, we will drill two important strategic wells that will help define our future plans for the fields and we will continue to build production in Gabon.
“With additional opportunities to deliver value across our portfolio, including gas commercialisation in Ghana, our revised Kenya development project and an exciting well in a proven play in Guyana, we are well-placed to deliver value from our assets and to grow our business.”