Aiming to capitalize on a recent surge in production from a principal African asset, Tullow Oil, which primarily focuses on African operations, is targeting a cash flow of $800 million within the next two years.
Rahul Dhir, Tullow Oil’s CEO, has shared the company’s half-yearly results on Wednesday. He also indicated a strategic shift for the company to a “harvesting mode.” This change is expected to produce $800 million in free cash flow between 2023 and 2025.
“Our upcoming cash influx will position us to further decrease our debt and establish a resilient capital structure,” Dhir has stated.
“This aligns with our objectives to expand our business, providing value to our investors, partnering countries, and workforce.”
However, Tullow’s first half of 2023 showed a dip in its financial metrics. Its revenues settled at $777 million, marking a near 10% decline compared to the same timeframe in 2022. Profits post-tax also fell, from $264 million in the first half of 2022 to $70 million in the same period this year.
Dhir, who took on the CEO role in July 2020, commented on the company’s resolute emphasis on capital discipline and optimal operational performance in recent years.
“Our continued strategic actions have borne fruit – we’ve significantly improved our business model, achieved a material reduction in our debt, and crucially, brought the Jubilee South East into operation, leading to a substantial production uptick,” Dhir added.
In its mid-year report, Tullow highlighted its achievements which featured the launch of the Jubilee South East project. This increased the overall production from the Jubilee field to over 100,000 barrels per day. Additionally, the company successfully commercialized Ghanaian gas through a temporary gas agreement, unlocking a fresh revenue source.
SOURCE: Upstreamonline
