TULLOW OIL PLC: 2020 Half Year Results

Tullow Oil (Tullow) announces its Half Year results for the six months ended 30 June 2020. Details of the presentation (virtual) and conference call are available on the last page of this announcement and online at www.tullowoil.com.

Rahul Dhir, Chief Executive Officer, Tullow Oil plc, commented today:

“Despite the very tough conditions in the first half of this year, we have successfully delivered reliable production and major, sustainable reductions to our cost base. We are also close to completing the important sale of our interests in Uganda. The quality of Tullow’s assets remains robust. Since my arrival as CEO, we have been developing new plans for our business, with the support of our Joint Venture Partners and expert advisors. These plans will deliver enhanced value from our assets to benefit all our stakeholders including our host countries and investors. We will host a Capital Markets Day towards the end of 2020 at which we will update the market on these plans to deliver on Tullow’s true potential.”

Click here to open the complete Half Year Results Statement


  • Group working interest production for the first half of 2020 averaged 77,700 bopd, in line with expectations
  • Revenue of $731 million; gross profit of $164 million; loss after tax of $1.3 billion
  • Loss after tax driven by exploration write-offs and impairments totalling $1.4 billion pre-tax
  • Capital investment of $192 million; decommissioning costs of $38 million
  • Negative free cash flow in 1H due to weighting of cash taxes, cash capex, differentials, redundancy costs and working capital
  • Net debt at 30 June 2020 of $3.0 billion; Gearing of 3.0x net debt/EBITDAX; liquidity headroom and free cash of $0.5 billion
  • Strong operational performance in Ghana; both FPSOs delivering in excess of 95 per cent uptime
  • Approval from shareholders for sale of Ugandan assets for $500 million in cash on completion and $75 million in cash at FID
  • Rahul Dhir appointed Chief Executive Officer as of 1 July 2020; as of 9 September 2020, Dorothy Thompson returns to non-Executive Chair and Mitchell Ingram appointed as new Non-executive Director of Tullow (see separate announcement)


Since December 2019, Tullow has taken significant steps to re-base its business through a major restructuring of its organisation and cost base which has led to substantial savings. This work has continued with the arrival of Rahul Dhir as CEO in July 2020 who has commissioned a comprehensive review of Tullow’s portfolio, growth prospects and capital structure. Once this review is complete, and its conclusions have been fully validated, the Group will hold a Capital Markets Day (CMD) before the end of the year. At this CMD, Rahul Dhir and other senior leaders will lay out their plans for Tullow’s business and assets and demonstrate how they will unlock material value from the portfolio.


  • Group production has been strong going into the second half and full year guidance has been narrowed to 73-77,000 bopd following good well performance in Ghana offset by the negative impact from OPEC+ quotas in Gabon
  • Maximising Jubilee/TEN gas offtake nominations; focus on continuous improvement to maintain FPSO uptime in excess of 95%
  • Ntomme-09 production well came on stream in August and is incrementally adding c.5,000 bopd gross to TEN oil production
  • In Kenya, the JV has withdrawn its Force Majeure (FM) notice; the JV has received a 15-month licence extension; the farm-down process has been suspended pending a comprehensive review of the development concept and strategic alternatives
  • Capital and decommissioning expenditure full year guidance of c.$300 million and c.$65 million remains unchanged
  • 60 per cent of 2H 2020 sales revenue hedged with a floor of $57/bbl; 48 per cent of 2021 hedged with a floor of $51/bbl
  • 2020 free cash flow forecast to break even at the current forward curve subject to year-end working capital movements
  • Proceeds of $500 million from Uganda transaction completion expected before year-end; portfolio sales still targeted to deliver proceeds of over $1 billion in aggregate albeit in a challenging external environment for asset sales and farm downs
  • Organisational restructuring well advanced and forecast to deliver cash savings of over $350 million over three years, significantly in excess of the previous target of $200 million. This will deliver annual sustainable cash savings of over $125 million from 2021.
  • Semi-annual RBL debt capacity redetermination expected to complete in early October 2020; at Tullow’s request, the next redetermination will be in January 2021 following the CMD later this year to incorporate the outcome of revised business plans
  • Evaluation of various refinancing alternatives with respect to the Group’s capital structure is ongoing in parallel
  • New exploration acreage awarded in Peru; data reprocessing and evaluation continues in Guyana; drilling of Goliathberg-Voltzberg North well in Block 47, Suriname, planned for first quarter of 2021.