West Africa-focused Tullow Oil said on Wednesday it was on track to deliver its stated target of $800 million in free cash flow from 2023 to 2025 with over $600 million expected to be generated over 2024 to 2025.
The London-listed oil and gas explorer said the start-up of Jubilee South East offshore Ghana drove production and boosted 2023 cash flow ahead of its expectations.
In its full-year results, the company said net debt reduction was also accelerated to $1.6 million, down from $1.86 million in 2022.
Chief executive Rahul Dhir said: “2023 was a year of significant achievements, including start-up of Jubilee South East that delivered material production growth from our core operated field, a new revenue stream established from the sale of Ghana associated gas; and reserves growth in Gabon through licence extensions.”
“We also generated free cash flow ahead of expectations despite a lower year-on-year realised oil price and demonstrated our ability to access long-term capital through the $400 million debt facility agreement with Glencore,” he said.
“In line with our strategy, we are continuing to focus relentlessly on operational excellence, capital efficiency and investments to drive growth. This strategy is delivering material cashflow generation and we are on track to deliver our target of c.$800 million free cash flow over the 2023 to 2025 period and optimise our capital structure,” he said.
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