UK based oil company, Tullow, has announced plans to resume drilling in Ghana’s oilfields by May 2025 following the resolution of a long standing tax dispute with the Ghanaian government.
The company disclosed this in a statement ahead of its 2024 full year financial results, stating that the settlement of the Ghana Branch Profits Remittance Tax arbitration removes a $320 million contingent liability and reinforces the stability of its petroleum agreements in the country.
Tullow reported revenue of $1.5 billion in 2024 at an average realized oil price of $80.2 per barrel before hedging. The company’s net debt dropped to $1.45 billion, bringing its debt to equity ratio to 1.3 times.
In 2024, Tullow’s working interest production averaged 61,200 barrels of oil equivalent per day (boepd), including 6,600 boepd of gas. Production from the Jubilee oilfield was estimated at 33,900 barrels per day net (87,000 barrels per day gross), while the TEN field contributed 10,200 barrels per day net (18,500 barrels per day gross).
The company successfully completed its latest drilling campaign at Jubilee ahead of schedule, bringing five new wells three producers and two water injectors onstream without any recordable safety incidents.
Tullow also reported an average floating production storage and offloading (FPSO) uptime of 97% across the Jubilee and TEN fields in 2024.
Regarding reserves, the company noted a reduction of 22.4 million barrels of oil equivalent due to production in 2024 and revisions to estimates at Jubilee. However, Tullow reported an upward revision of reserves at TEN, attributing it to significant progress in cutting fixed costs, particularly in relation to FPSO operations.
With the tax dispute resolved and production levels stable, Tullow said it remains committed to its operations in Ghana and looks forward to further development in 2025.
