Tullow Oil has reported stronger production and improved cash flow for the first half of 2026, supported by higher oil prices, improved operational performance and new wells in Ghana.
The independent oil and gas producer said working-interest production rose to 43.7 thousand barrels of oil equivalent per day (kboepd) in the six months to June 30, from 40.6 kboepd a year earlier. The company expects full-year production to come in at the high end of its guidance range of 34-42 kboepd.
Revenue increased to $496 million from $411 million in the first half of 2025, while gross profit rose to $276 million from $165 million.
Tullow recorded a loss after tax of $101 million, compared with an $80 million loss a year earlier. The company said the 2026 result was affected by one-off refinancing transaction fees.
Realised oil prices before hedging increased to $95 a barrel from $71.40 a barrel, while prices after hedging rose to $86.30 a barrel from $69.70 a barrel.
Free cash flow improved significantly to $4 million, compared with an outflow of $188 million in the first half of 2025. The figure was after $64 million in cash interest payments and $70 million in one-off refinancing transaction costs.
Tullow said production benefited from strong performance from new wells, improved reliability following the 2025 Jubilee field shutdown and first-half FPSO uptime of more than 99%.
The company completed its 2025-26 drilling campaign in September, bringing six Jubilee producers and one Jubilee water injector online.
Tullow also reported a more than 380% reserves replacement ratio in the first half, with 2P reserves increasing to 121.7 million barrels of oil equivalent. The increase was attributed to licence extensions, project maturation and stronger-than-expected well performance.
The company said it recovered $73 million of historic gas receivables owed by the Government of Ghana during the first half. It added that the remaining historic gas receivable had been recovered as of September 28, 2026.
Net debt stood at $1.4 billion at June 30, down from $1.6 billion a year earlier, while liquidity headroom increased to $300 million from $200 million.
For the full year, Tullow maintained capital expenditure guidance of about $200 million but cut its decommissioning spending forecast to about $15 million from $25 million, citing expected deferrals in contributions to the TEN decommissioning fund.
The company expects to lift 14 cargoes in 2026, including 11 from Jubilee and three from TEN. Six cargoes were delivered in the first half, with eight planned for the remainder of the year.
Tullow has also signed a rig contract for its 2027-28 Ghana drilling programme, known as Campaign 2, covering up to 10 wells. The rig is expected to arrive around the middle of 2027.
The programme will be supported by 4D seismic data and additional from an Ocean Bottom yNode survey, with the company targeting further development opportunities across its Ghanaian assets.
Tullow said it is also progressing projects including subsea pumps, additional Jubilee and TEN development drilling, gas monetisation and well interventions.
The company’s full-year free cash flow guidance, upgraded in August, remains at $170 million-$250 million based on an oil price range of $70-$100 a barrel.
Chief Executive Officer Ian Perks said the company’s first-half performance had strengthened its outlook, v to improved production, higher oil price realisations, reserves growth and the recovery of outstanding government receivables.
He said Tullow was increasingly confident in its ability to generate further cash flow from its Ghanaian assets as it prepares for the next drilling campaign.
October 22, 2026
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