Tullow Oil sharpens Ghana strategy with refinancing and TEN FPSO acquisition

Tullow Oil (LSE:TLW) reported full-year 2025 revenue of $847 million, with average production of 40.4 kboepd, reflecting the impact of asset disposals and lower output. Despite this, the company generated $99 million in free cash flow and reduced net debt to $1.35 billion. Disposals in Gabon and Kenya raised $347 million, while strong uptime from its FPSO operations in Ghana supported performance. Profits from continuing operations remained under pressure, although the group reported a modest overall profit after tax.

Production growth and contract extensions support outlook

In early 2026, production increased to 43.4 kboepd, driven by new wells at the Jubilee field and solid operational delivery. The Ghanaian parliament approved extensions to the Jubilee and TEN petroleum agreements through to 2040, providing long-term visibility over key assets.

Tullow also secured improved gas sales terms and agreed to acquire the TEN FPSO, a move expected to reduce lease costs and enhance operational synergies. Alongside this, the company upgraded its cash flow guidance, supported by stronger commodity prices and operational performance.

Refinancing strengthens liquidity but balance sheet risks remain

The group completed a comprehensive refinancing, extending debt maturities and improving liquidity to support its Ghana-focused investment programme. However, its outlook continues to be constrained by balance sheet challenges, including high leverage and negative equity.

While technical indicators point to improving short-term momentum, the longer-term trend remains weak. Valuation offers limited support, with a negative P/E ratio and no dividend yield available.

More about Tullow Oil

Tullow Oil is an independent energy company focused on developing oil and gas assets, with core operations centred in Ghana. Listed in London and Ghana under the ticker TLW, the company concentrates on offshore fields such as Jubilee and TEN. Following its exit from non-core assets in Gabon and Kenya, Tullow is increasingly focused on maximising value from its Ghanaian portfolio.