Tullow Oil is bullish on 2022 production as it focuses on fields in Ghana

Ireland-listed oil and gas exploration company Tullow Oil expects to keep production at 59,000-65,000 barrels per day in 2022 as it focuses on assets in Ghana.

Tullow, who chaired the company’s annual general meeting in London on Wednesday, said it was making good progress on its portfolio and managing costs carefully.

Chief Executive Officer Rahul Dhir said it has been a “transformational year” for the company.

He said Tullow is preparing to “take advantage” of opportunities in Africa as other companies in the oil and gas sector shift their focus away from the continent.

“As a responsible operator with a long history in both West and West Africa, Tullow is uniquely positioned to capitalize on the opportunities this time of change presents,” said Mr. Dhir.

“We have clear potential to grow our business both organically and inorganically and I strongly believe that Tullow can and will deliver significant value to all of our stakeholders in the years to come,” said Mr. Dhir.

The oil and gas group has interests in over 40 exploration and production licenses in 11 countries.

Last year the company turned its attention to its holdings in Ghana and said it was also looking for a partner in Kenya and exploring a well in Gabon.

Tullow began its multi-year drill program in Ghana in April 2021 and is scheduled to ramp up further drilling at the country’s Jubilee and TEN fields this year.

Last year, it successfully preempted the sale of Occidental Petroleum’s interests in the Jubilee and TEN fields to US-listed Kosmos Energy, increasing Tullow’s net share of daily production from the two fields by about 4,000 barrels per day.

The company plans to cut costs further by taking control of a floating production, storage and offloading vessel at Jubilee from Japanese contractor MODEC.

There are also “very significant gas resources” at Jubilee and TEN, Mr Dhir said, with “active discussions” with partner companies and the Ghanaian government.

The Company is also exploring the Tano Basin, which stretches across Ghana and Côte d’Ivoire.

“Combined with the progress we anticipate with our climate projects, Tullow will continue to be a leading investor in Ghana with an integrated oil, gas and local content offering,” said Mr. Dhir.

Davy analyst Colin Grant said there remained strong demand in global oil and gas markets after a period of “underinvestment.”

“We believe the oil and gas sector, and indeed all commodity-related assets, is poised for a decade of strong relative performance after a corresponding period of underinvestment and investor neglect that has left valuations at near record lows relative to the market has, been left behind. ‘ he said in a note on Wednesday.

Tullow Oil reported an after-tax loss of $81 million (€74 million) for 2021 due to exploration costs, impairments and restructuring, reducing its after-tax losses from €1.2 billion in 2020.