Tullow Oil has maintained its capital expenditure and decommissioning spending guidance for 2025 at approximately US$185 million and US$20 million respectively, with the company projecting steady operational activity across its Ghana assets.
The energy firm also upheld its free cash flow forecast of around US$300 million for 2025, based on a realised oil price of US$65 per barrel (with post-hedging realisations averaging about US$68/bbl to end-October). This outlook, however, factors in the expected recovery of about US$100 million in outstanding gas receivables owed by the Government of Ghana—funds that remain unpaid.
According to the company, total receivables due from the Government of Ghana, including TEN development debt and overdue cash calls, exceeded US$200 million (net to Tullow) as of end-October. Tullow says it is working closely with government authorities to resolve the situation.
Year-end 2025 net debt is projected at roughly US$1.2 billion. The company noted that its 2026 production outlook will depend on multiple variables, including the performance of new wells drilled to offset natural field decline.
Jubilee Output Stabilises as New Wells Support Production
Jubilee oil production has averaged approximately 61,000 barrels per day (23,900 bopd net) to end-October 2025. Output reflects challenges encountered earlier in the year but is being supported by the strong performance of the J72-P well, brought onstream in July.
Drilling operations resumed at Jubilee in early November, with the second 2025 production well—J73-P—expected onstream around year-end. The partnership has approved a five-well drilling campaign for 2026, comprising three producers, one water injector and an optional additional producer well.
Tullow indicated that 4D seismic interpretation from the first-quarter survey continues to provide enhanced reservoir insights, aiding well design and optimisation. Meanwhile, the Ocean Bottom Node (OBN) seismic survey, currently underway, is expected to conclude by year-end. Integrated processing of the OBN and towed streamer datasets is anticipated to deliver an improved velocity model in 2026 to strengthen subsurface imaging and fluid prediction.
TEN Fields Continue to Perform Above Expectations
TEN oil production has averaged around 16,000 bopd (8,900 bopd net) in 2025 to end-October—exceeding expectations due to sustained strong performance from the Ntomme and Enyenra fields.
FPSO uptime at both Jubilee and TEN remains high, averaging 97 percent through the period.
Progress on Licence Extensions and Revised Gas Agreements
Following the signing of a Memorandum of Understanding (MoU) with the Government of Ghana, Tullow reports “good progress” in finalising the agreements required to extend the Jubilee and TEN licences to 2040. These agreements also cover payment security for gas and an updated Plan of Development for Jubilee.
Additionally, a new Jubilee Gas Sales Agreement has been concluded, confirming the applicable gas price through the remaining life of the licences.
Tullow says these elements—alongside ongoing drilling, seismic work and field performance—position the company to stabilise production and deliver on its medium-term commitments in Ghana’s upstream sector.