Highlights

  • Tullow completed asset sales in Kenya and Gabon, generating proceeds of at least USD 420 million.
  • Jubilee and TEN fields report average production of 61 kbopd and 16 kbopd, respectively, in 2025.
  • Group production guidance for 2025 remains at the lower end of 40–45 kboepd range.

Tullow Oil plc (LSE:TLW) reported that Group production to the end of October 2025 averaged c.40.7 kboepd, including 7.1 kboepd of gas, reflecting the sale of Gabonese assets effective from the start of the year.

Ghana – Jubilee and TEN Fields
Jubilee oil production averaged c.61 kbopd (c.23.9 kbopd net) to end-October 2025. Production in 2025 continued to reflect challenges from the first half of the year, but was supported by output from the first of the two 2025 Jubilee production wells (J72-P), which came online in July. Drilling resumed in November with the second well (J73-P) expected to be onstream by year-end.

The partnership approved a five-well 2026 drilling programme, including four committed wells (three producers, one water injector) and one optional producer well. Interpretation of 4D seismic data acquired earlier in 2025 continues to provide reservoir insights and supports well design optimisation. The Ocean Bottom Node (OBN) seismic survey is underway, with integrated processing of OBN and towed streamer 4D data expected to improve subsurface imaging and fluid predictions in 2026.

TEN oil production averaged c.16 kbopd (c.8.9 kbopd net) through end-October, exceeding expectations due to performance from Ntomme and Enyenra wells. Overall FPSO uptime at Jubilee and TEN averaged 97% to the end of October. Licence extensions to 2040 for Jubilee and TEN have progressed following a Memorandum of Understanding with the Government of Ghana, alongside an updated Plan of Development and a new Jubilee Gas Sales Agreement confirming gas prices to the end of the licences.

Côte d’Ivoire – Espoir Field
Espoir production averaged c.1.2 kboepd net to Tullow to end-October 2025, slightly below expectations, primarily due to gas export outages during the third quarter. The company continues to work with the operator to optimise production strategy going forward.

Strategic and Financial Update

Tullow has made progress on strategic and financial priorities, including asset sales in Kenya and Gabon. The Kenya sale completed on 25 September generated USD 40 million in proceeds, with a further USD 40 million expected upon Field Development Plan ratification by year-end, and an additional USD 40 million payable from 2028. The Gabon sale, completed on 29 July, generated net proceeds of USD 307 million.

Cost optimisation measures of c.USD 10 million are well advanced, targeting annual net G&A of c.USD 40 million in 2025, with expected savings of c.USD 50 million over three years. Tullow is engaging with bondholders, commodity traders, and other funding sources regarding refinancing its capital structure, including potential liability management exercises, given the May 2026 bond maturity and current market conditions.

Guidance

Tullow expects 2025 Group production to be at the lower end of the 40–45 kboepd range. Capital expenditure and decommissioning expenditure guidance for 2025 remain c.USD 185 million and c.USD 20 million, respectively. Free cash flow is expected at c.USD 300 million at USD 65/bbl, including recovery of c.USD 100 million in outstanding gas receivables from Ghana. Total receivables from Ghana exceeded USD 200 million net to Tullow as of end-October. Year-end net debt is expected to be around c.USD 1.2 billion.

For 2026, production will depend on output from new wells offsetting the natural decline in existing well stock, with Group production guidance of 34–42 kboepd. Pre-financing cash flow is forecast at c.USD 70–100 million, with capital expenditure of c.USD 200 million and decommissioning of c.USD 25 million.

Share Price Snapshot

TLW was trading 33.18% lower at AUD 5.70 per share as of 21 November 2025.