Audio By Carbonatix
Tullow Oil has recorded a loss after tax of US$101 million for the first half of 2026, slightly higher than the US$61 million loss recorded over the same period in 2025.
The results were contained in the oil producer’s half-year financial report released to investors.
Tullow said the loss was primarily driven by refinancing costs and other fees, including one-off refinancing transaction fees.
Despite the loss, the company recorded revenue of US$495 million and gross profit of US$276 million during the period.
Turnaround strategies showing progress
Tullow said its turnaround strategy is beginning to yield results, particularly in production.
Net production averaged 35.7 thousand barrels of oil per day (kbopd) in the first half of 2026.
The company attributed the performance to strong production from new wells and work completed during the successful 2025 Jubilee scheduled shutdown.
It also highlighted FPSO uptime averaging over 99% and production optimisation activities, including dual-riser operations and riser-based gas lift.
“A number of existing wells drilled in the previous campaign have seen the benefit of production optimisation activities in the first half of 2026,” the company said.
Gross oil production from the TEN fields averaged 14.8 kbopd, equivalent to net production of 8.1 kbopd, which Tullow said was above expectations.
Tullow expects to lift 14 cargoes in 2026, comprising 11 from Jubilee and three from TEN.
This represents an increase of two Jubilee cargoes compared with its initial guidance issued in November 2025.
Six cargoes were delivered during the first half of the year, with eight more planned for the second half.
The company said its other turnaround measures are also expected to support the long-term development of the Jubilee and TEN fields.
Tullow also highlighted the government’s decision to extend the development agreement covering the Jubilee and TEN fields.
According to the company, the extension provides a stable investment environment, alongside a gas payment security mechanism and heads of terms for the potential supply of gas from the TEN fields.
Tax dispute and Ghana operations
The half-year loss comes as Tullow continues to deal with the fallout from a tax dispute with the Ghana Revenue Authority (GRA).
An International Chamber of Commerce arbitration tribunal in London ruled in favour of the Ghanaian government in a dispute involving a nearly US$400 million tax charge against Tullow Oil.
Tullow had challenged the charge, arguing that it breached the terms of Ghana’s Petroleum Agreement. A penalty was also applied.
The tribunal, however, ruled in favour of Ghana and found that the government’s action was within the law.
Finance Minister Dr Cassiel Ato Forson has subsequently said government will ensure Ghana receives revenues due from Tullow Ghana Limited following the country’s victory in the international tax arbitration.
At the same time, he said government would safeguard the company’s ability to sustain its operations and investments in Ghana.
Dr Forson described Tullow as “a vital partner to Ghana” and the country’s largest petroleum producer.
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