Tullow issues statement in advance of the Group’s 2025 Full Year Results.

20 Feb Tullow issues statement in advance of the Group’s 2025 Full Year Results.

(Oilandgaspress) – Tullow Oil plc reports 2025 revenue of c.$847 million (including c.$19 million hedge costs) at an average realised oil price (pre-hedging) of $67.8/bbl.

· 2025 capital and decommissioning expenditure were c.$166 million and c.$17 million respectively, in line with guidance.

· 2025 free cash flow of c.$100 million, the reduction from previous guidance primarily relates to:

o Delay in receipt of the second instalment of proceeds from the Kenya disposal ($40 million) related to the ratification of the approved Field Development Plan, now expected during the first quarter of 2026,

o Delay in receipt of cash calls (c.$40 million) and gas payments (c.$100 million) from the Government of Ghana, and

o Lower revenue in November and December of 2025 (c.$20 million).

· Government of Ghana receivables as at 31 December 2025 were c.$225 million net to Tullow (pre-tax), with c.$65 million related to cash calls, c.$110 million related to gas payments and c.$50 million related to TEN development debt. Tullow is working with the Government of Ghana and its agencies to resolve these outstanding balances.

· The hearing for Business Interruption Insurance arbitration completed in November 2025, with a result not expected until the second half of 2026. The hearing in relation to the loan interest arbitration has been scheduled for September 2026. Tullow has advanced discussions with the Government of Ghana, with the aim of resolving the assessments on a mutually acceptable basis.

· Cost base optimisation has delivered savings of c.$10 million, reducing 2025 net G&A to c.$43 million, with targeted savings of c.$50 million over the next three years compared to 2024.

· Free cash at 31 December 2025 was $322 million and is expected to be materially consistent at 31 May 2026, subject to working capital movements.

· Year-end net debt reduced to c.$1.35 billion with liquidity headroom of over $300 million.

Ian Perks, Chief Executive Officer, Tullow Oil Plc, said: “2025 has been a year of disciplined execution across the business. This includes strong operational momentum which continues with excellent results from the latest Jubilee well and a further five wells due onstream this year to support our production targets. We have achieved significant cost reductions and completed the sale of non-core assets in our ongoing efforts to streamline our portfolio and strengthen our financial position.

“However our 2025 full year free cashflow was negatively impacted by the commodity price environment towards the end of the year and delays in receipt of Government of Ghana receivables and the second instalment of proceeds from the Kenya disposal.

“The refinancing transaction we have announced today enables us to focus on delivering our near-term priorities, which include driving further cost efficiencies, improving cashflow management and optimising our production.”

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