Tullow Oil, which has its operations centred in West Africa, announced on Wednesday that it anticipates fulfilling its declared objective of $800 million in net cash yield from 2023 to 2025, with over $600 million foreseen to accumulate over the years 2024 to 2025. The commencement of Jubilee South East off the coast of Ghana contributed to production and escalated 2023 liquidity above the company’s estimates, according to the London-based oil and gas exploration firm.
In Tullow Oil’s annual results reveal, it was stated that the firm also hastened the reduction of its net debt to $1.6 million, a decrease from $1.86 million in 2022. Looking back on the year 2023, CEO Rahul Dhir highlighted noteworthy achievements such as the operational start-up of Jubilee South East, which led to a significant upturn in production from our primary managed field. Dhir noted this also created a new source of income from the sale of associated gas in Ghana and expanded reserves in Gabon through licence renewals.
Dhir further stated, that despite lower realised oil prices compared to the previous year, the company generated surplus cash flow. He also added that Tullow Oil demonstrated its aptitude for long-term capital access by agreeing to a $400 million debt facility with Glencore.
In the spirit of their strategy, Tullow Oil maintains its relentless focus on operational excellence, capital efficacy and investments to stimulate growth. Dhir proudly announced that this strategy is creating substantial cashflow and the company is on course to achieve its target of approximately $800 million net cash yield over the period of 2023 to 2025 and perfect the capital structure.
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