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Tullow Oil announces 2026 Half Year Results

28 Sep 2026

Tullow Oil, the independent oil and gas exploration and production group has announced its Half Year Results for the six months ended 30 June 2026.

Strong operational performance delivers outstanding first half production
Positive momentum underpins improved delivery and free cash flow generation
Material oil price leverage and c.380% reserves replacement supports significant value creation

Tullow Oil, the independent oil and gas exploration and production group, has announced its Half Year Results for the six months ended 30 June 2026.

Ian Perks, Chief Executive Officer, Tullow Oil plc, commented:

We have delivered outstanding operational performance in the first half of 2026 and expect production for the year to be at the top end of guidance. With realised oil prices before hedging of $95/bbl, we have significantly upgraded free cash flow expectations. Strong foundations are embedded to support industry-leading FPSO uptime, water injection efficiency and production optimisation initiatives which have reduced the decline of existing wells. The successful completion of our 2025-26 drilling campaign marks an important milestone for Tullow with higher-than-expected production from new wells, further supporting production performance and improving the outlook for the long-term potential of our Ghanaian portfolio.

We are building on this momentum as we seek to create further value through our next drilling campaign in 2027-28 (Campaign 2) and delivery of other near-term opportunities. These opportunities have delivered material reserves growth, with approximately 380% reserves replacement in the first half of the year. Further reserves growth is possible before year-end. In addition, the longer-term outlook for the business remains healthy. This is against a backdrop of a stable fiscal environment and positive Government of Ghana relations, as we begin to look at additional material growth potential near our existing infrastructure.

Supported by our strengthened financial position, disciplined capital allocation and a supportive oil price environment, we are increasingly confident in our ability to unlock the full value of our assets and deliver material cash flow.

2026 first half results

First half Group working interest oil and gas production 43.7 kboepd (1H25: 40.6 kboepd).
2025-26 drilling campaign completed in September, with six Jubilee producers and one Jubilee water injector onstream.
Strong production performance in the first half of the year has been supported by good performance from new wells and enabled by thorough operational rigour following the successful 2025 Jubilee scheduled shutdown, which has led to improved reliability of key equipment, supported by outstanding first half of 2026 FPSO uptime above 99% and production optimisation activities such as dual riser operations and riser-based gas lift.
Revenue of $496 million (1H25: $411 million); realised oil price of $95.0/bbl before hedging (1H25: $71.4/bbl) and $86.3/bbl after hedging (1H25: $69.7/bbl), gross profit of $276 million (1H25: $165 million); loss after tax of $101 million (1H25: loss after tax of $80 million). 2026 loss after tax impacted by one-off refinancing transaction fees.
Net G&A of $16 million (1H25: $23 million).
Capital expenditure of $134 million (1H25: $103 million) and decommissioning spend of $13 million (1H25: $13 million).
An additional $9 million proceeds was realised following the termination of Tullow’s Kenyan royalty payments and back-in right.
Free cash flow1 of $4 million (1H25: $(188) million), after $64 million cash interest payments and $70 million one-off refinancing transaction costs.
2P reserves2 increased to 121.7 mmboe, driven by licence extensions, project maturation and positive well performance, delivering reserves replacement ratio of more than 380%.
Recovery of $73 million pre-2026 gas receivables due from the Government of Ghana has been achieved during the first half of 2026. The remaining historic gas receivable has been recovered as of 28 September 2026.
Net debt(1) at 30 June 2026 of $1.4 billion (30 June 2025: $1.6 billion); cash gearing of 1.9x net debt/EBITDAX(1) (30 June 2025: 2.1x); liquidity headroom of $0.3 billion (30 June 2025: $0.2 billion).

2026 outlook and guidance

2026 Group working interest production is expected to be at the high end of the guidance range of 34-42 kboepd.
Full year capex guidance remains c.$200 million.
Full year decommissioning guidance is reduced from c.$25 million to c.$15 million, due to expected deferrals in contributions to the TEN decommissioning fund.
Tullow expects to lift 14 cargoes in 2026 (11 from Jubilee and three from TEN), an increase of two cargoes from Jubilee vs initial guidance in November 2025. Six cargoes were delivered in the first half with a further eight planned in the second half of the year.
A rig contract for the 2027-28 Ghana drilling programme (Campaign 2) has been signed for up to 10 wells, with the rig expected to arrive around the middle of the year and target identification being supported by the high-quality 4D seismic data and incremental support from the incorporation of the Ocean Bottom Node (OBN) survey data.
Tangible near-term projects such as subsea pumps, further Jubilee and TEN development drilling, monetisation of gas resources and a well intervention campaign are being progressed to mature material Jubilee and TEN resources into reserves.
As previously reported in August 2026, full year free cash flow guidance has been upgraded to $170-250 million at $70-100/bbl, reflecting positive production performance, higher than expected oil price realisations and progress on recovery of Government of Ghana receivables.

Alternative performance measures are reconciled on pages 34 to 36
2P reserves at 30 June 2026 based on Management estimates and adjusted for first half 2026 production

OPERATIONAL UPDATE

Production

In the first six months of 2026, Group working interest production averaged 43.7 kboepd, including 7.5 kboepd of gas. As previously stated, full year Group working interest production is expected to be at the high end of the guidance range of 34-42 kboepd.

Ghana

Strong operational rigour has yielded outstanding performance in the first half of 2026 with a combined average oil production rate of 35.7 kbopd net. This high performance has been supported by good performance from new wells and enabled by work completed during the successful 2025 Jubilee scheduled shutdown, which has improved reliability of key equipment and has been further driven by FPSO uptime averaging more than 99% and production optimisation activities, such as dual riser operations and riser-based gas lift.

Gross oil production from the Jubilee field averaged 70.8 kbopd (net: 27.6 kbopd) in the first half of the year, outperforming expectations. The 2025-26 drilling campaign is now complete with six Jubilee producers onstream and the final well, a water injector, onstream in September. The 4D seismic data interpretation has been shown in this drilling campaign to deliver key reservoir insights that have enabled successful target selection and high production performance.

A number of existing wells drilled in the previous campaign have seen the benefit of production optimisation activities in the first half of 2026 and a number of key wells have outperformed decline expectations whilst being supported by dual riser operations.

Full year water injection performance remains in line with expectations, despite unexpected downtime in the second quarter. Voidage replacement remains above 100% in the first six months and showing an increasing trend on an annual basis.

Gross oil production from the TEN fields averaged 14.8 kbopd (net: 8.1 kbopd) in the first half of the year, above expectations.

A rig contract for the 2027/28 Ghana drilling programme (Campaign 2) has been signed for up to 10 wells, with the rig arriving around the middle of the year and target identification being supported by the high-quality 4D seismic and incremental support from the incorporation of the OBN data.

Tangible near-term projects such as subsea pumps, further development drilling, monetisation of gas resources and an intervention campaign are being progressed to mature material Jubilee and TEN resources into reserves. Furthermore, tangible longer-term near-field and potential infrastructure-led exploration opportunities have been identified and are being matured in deeper horizons beneath Jubilee and TEN, supported by the high-quality 4D seismic and in due course by the OBN survey data.

As previously announced, in February 2026, Tullow signed a Sale and Purchase Agreement (SPA) to acquire the TEN FPSO for a net consideration of c.$126 million to be paid upon completion, which is expected at the end of the first quarter of 2027. Following this, 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.

The previously announced extension of Tullow’s West Cape Three Points and Deep Water Tano Petroleum Agreements, which cover the Jubilee and TEN fields in Ghana were ratified by the Ghanaian Parliament. The extension to 2040 secures and confirms our long-term operating position and provides a runway for responsible resource development and maturation. Revised terms for the supply of gas from the Jubilee field to the end of 2040 provide a stable investment environment alongside a gas payment security mechanism and heads of terms for the potential supply of gas from the TEN fields.

Côte d’Ivoire

Working interest production from the non-operated Espoir field in Côte d’Ivoire was c.0.6 kboepd, below expectations due to nearly two months of downtime between March and May. As of 24 July 2026, Tullow has exited the licence. Société Nationale d'Opérations Pétrolières de la Côte d'Ivoire (PETROCI) has assumed ongoing operations on behalf of the state.

Reserves and resources

As published on 28 September 2026, total reserves of 121.7 mmboe1 as of 30 June 2026 represent a material increase to reserves of 100.2 mmboe as of 31 December 2025. The increase reflects material reserve additions associated with the licence extension to 2040 that was approved in February, development drilling commitments approved in May and the Teak gas development and positive revisions associated with the existing portfolio with reduced decline from key existing wells and strong performance from new wells, offset by negative revisions related to Jubilee gas and first half 2026 production. The increase translates into a reserves replacement ratio of c.380%.

Further reserves growth is possible before year-end, through maturation of other projects, such as infill drilling on TEN and the multiphase pump project on Jubilee.