Tullow Oil plc (Tullow), the independent oil and gas exploration and production group (Group), announced its Full Year Results for the year ended 31 December 2025.
Ian Perks, Chief Executive Officer, Tullow Oil plc, commented: “Throughout 2025 and into early 2026, we have delivered against a clear set of strategic priorities to position Tullow for long-term success.
This began with the consolidation of our business to focus on our high-value assets in Ghana, with the sale of our non-core assets in Gabon and Kenya, alongside significant cost reductions.
These efforts positioned the company strongly for the successful refinancing, which was completed earlier this month with overwhelming support from our creditors.
This transaction provides Tullow with the strong financial foundation and flexibility required to deliver value for stakeholders.
“Operationally, 2026 has started strongly, with momentum building across the business. We are particularly encouraged by the positive early results from our Ghana drilling campaign, which highlight the quality and potential of our world-class assets.
A key milestone has been the agreement to purchase the TEN FPSO, a value-accretive acquisition that significantly improves the field’s economics by eliminating lease costs and providing an opportunity to capture operating cost savings.
Additionally extending the Jubilee and TEN petroleum agreements to 2040, and higher oil prices have further strengthened our platform for sustainable growth.
“Looking ahead, we have four more wells scheduled to come onstream in 2026, and the continued interpretation of 4D and Ocean Bottom Node (OBN) seismic data which will support future drilling campaigns at Jubilee and TEN, driving reserves growth and unlocking further value from our assets.
Our focus remains on improving operational performance and executing our business plan.”
2025 FULL YEAR RESULTS
- Group working interest oil and gas production averaged 40.4 kboepd (2024: 51.5 kboepd).
- Revenue of $847 million (2024: $1,287 million), including $19 million hedge costs (2024: $74 million).
- Capital expenditure of $166 million (excluding $29 million in Gabon) (2024: $179 million, excluding $52 million in Gabon) and decommissioning expenditure, including cash provisioning for future decommissioning of $17 million (2024: $60 million).
- Sales of Tullow’s Gabonese and Kenyan assets, completed in July and September, respectively, realised $347 million in proceeds during 2025.
- Adjusted EBITDAX2 of $586 million (2024: $1,008 million); gross profit of $247 million (2024: $635 million); profit after tax for the year of $7 million (2024: $55 million); and loss from continuing operations after tax of $129 million (2024: $55 million).
- Free cash flow2 (FCF) of $99 million (2024: $156 million).
- Net debt2 at year end reduced to $1,353 million (2024: $1,452 million); cash gearing of net debt2 to adjusted EBITDAX2 of 2.3 times (2024: 1.4 times); liquidity headroom of $322 million (2024: $715 million).
- One new Jubilee well (J72-P) brought onstream in July 2025, which is currently producing c.8 kbopd.
- Average FPSO uptime at Jubilee and TEN of 97%. 2026
FIRST QUARTER PERFORMANCE
- Group working interest oil and gas production averaged 43.4 kboepd during the first quarter of 2026, underpinning expectations of delivering the higher end of full-year guidance.
- The Petroleum Agreement extensions to 2040 for the Jubilee and TEN fields were ratified by the Ghanaian parliament in February 2026, unlocking the potential to book further material oil and gas reserves.
- Tullow secured revised terms for the supply of gas from the Jubilee field to the end of the extended period at an escalating price of $2.50/mmbtu and agreed heads of terms for the potential supply of gas from the TEN fields.
- Tullow and the Government of Ghana have also agreed on a gas payment security. • 2025-26 Ghana drilling programme continues with J74-P onstream in January 2026 and J75-P onstream in March 2026.
- On 19 February 2026, Tullow signed a Sale and Purchase Agreement to acquire the TEN FPSO on behalf of the joint venture for a gross consideration of $205 million ($125.6 million net to Tullow), which is to be paid upon completion at the end of the first quarter of 2027.
Following completion, Tullow intends to maximise operational synergies with the adjacent Jubilee Field and drive further cost efficiencies, which will underpin the longer-term development of the TEN and Jubilee fields.
2026 OUTLOOK AND GUIDANCE
- Group working interest production is expected to be at the higher end of the previously announced 34-42, including c.6 kboepd of gas.
- A further four Jubilee wells are expected onstream before the end of the year (three producers and one water injector).
- Capital expenditure2 of c.$200 million, allocated as follows: c.$190 million in Ghana and c.$10 million in Côte d’Ivoire.
- Decommissioning spend of c.$5 million for UK; c.$20 million cash provisioning for Ghana.
- Commodity hedge portfolio protecting c.60% of 2026 forecast sales volumes whilst retaining material oil price upside exposure.
- Pre-financing cash flow2 guidance has increased to c.$260-365 million at $70-100/bbl, primarily due to year-to-date production performance being above expectations, higher oil price realisations and the higher oil price assumption used for guidance.
- Free cash flow2 guidance of $70-175 million at $70-100/bbl.
- Cash flow would increase by c.$40 million from $70/bbl to $80/bbl and then by a further c.$30 million for every additional $10/bbl increase, non-linear due to hedges in place.
- Free cash flow guidance includes recovery of 2025 cash call receivables and c.$40 million gas revenues related to 2026 gas production, but excludes c.$110 million historical gas receivables and the c.$50 million receivable related to TEN development debt.
Following the execution of the Master Gas Agreement, Tullow has a payment security mechanism for gas.
Tullow is working closely with the Government of Ghana and its agencies to resolve the historic receivables on a mutually acceptable basis.
- Interpretation of 4D and OBN seismic data is ongoing to support well design and placement in the current drill programme and unlock future reserves growth in the Jubilee and TEN fields.
- On 27 April 2026, Tullow completed a comprehensive refinancing transaction, which includes an extension to its Senior Secured Notes and Glencore facility to November 2028 and May 2030 respectively, and a new $100 million cargo pre-payment facility with Glencore to provide additional liquidity.
The transaction provides a stable platform for Tullow to deliver its investment programme and realise the full value of its assets.
- Following completion of the comprehensive refinancing transaction, Tullow has liquidity headroom of free cash and undrawn facilities in excess of $200 million.
