Tullow Oil says disposals will bring debt down toward $1 billion

Tullow Oil PLC on Thursday said the search for a new chief executive is progressing as it unveiled new cash flow targets to reflect proceeds from recently announced disposals.

The oil and gas producer focused on the West African countries of Ghana and Ivory Coast said it has made strong progress on accelerating its deleveraging process through non-core asset disposals in the year-to-date.

These include the $300 million sale of assets in Gabon, announced in March, and the $120 million disposal of its Kenyan interests, announced in April. Completion and receipt of first two payments from the Kenyan sale totalling $80 million are expected during 2025.

Chief Financial Officer & Interim Chief Executive Officer Richard Miller said: ‘The strengthening of our balance sheet continues to be the key priority’ despite the ‘challenging’ oil price environment.

Tullow Oil said full-year free cash flow guidance is now $400 million assuming oil prices at $65 per barrel, inclusive of $380 million of disposal proceeds and $50 million of overdue gas payments in Ghana from 2024, resulting in expected year-end net debt of around $1.1 billion.

This would be a reduction from $1.45 billion at the end of 2024.

Tullow said production in the first quarter of 2025 was 52,900 barrels of oil equivalent per day, including 7,100 boepd of gas production, within the expected range, and affected by a two-week planned maintenance shutdown on the Jubilee field.

Production guidance for 2025, prior to Gabon transaction completion, remains 50,000 to 55,000 boepd, including 6,000 boepd of gas.

The process to find a new CEO is progressing and an update will be provided in due course, Tullow said.

Rahul Dhir stepped down as CEO in February although he remains available to the company until his notice period ends on June 5.

Shares were down 2.2% to 13.63 pence each in London on Thursday afternoon.

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