Tullow Oil has secured a refinancing deal, extended its Ghana petroleum agreements to 2040 and outlined mixed 2025 results, with free cash flow hit by lower oil prices and delayed payments.
The company says the new transaction strengthens liquidity and allows focus on cost efficiencies and production optimisation.
The company said on Friday that it had entered into a binding Lock-Up Agreement to implement a refinancing transaction with holders of c.66 percent of its senior secured notes and with Glencore.”
It also confirmed an extension of its Senior Secured Notes and Glencore facility to November 2028 and May 2030, respectively,” and agreed “a new Sh12.9 billion cargo pre-payment facility with Glencore to provide additional liquidity.”
In a trading update issued ahead of its 2025 full-year results, Tullow’s Chief Executive Officer Ian Perks said, “2025 has been a year of disciplined execution across the business.”
He highlighted strong operational momentum, which continues with excellent results from the latest Jubilee well and a further five wells due onstream this year to support our production targets.
However, he added, “Our 2025 full year free cash flow was negatively impacted by the commodity price environment towards the end of the year and delays in receipt of Government of Ghana receivables and the second instalment of proceeds from the Kenya disposal.
The refinancing, he said, enables the company to focus on delivering its near-term priorities, which include driving further cost efficiencies, improving cashflow management and optimising their production.
Operationally, Tullow reported that full-year working interest production averaged c.40.4 kboepd in 2025, including c.7.1 kboepd of gas.
Gross production from the Jubilee field was c.60.9 kbopd, while TEN delivered c.16.0 kbopd. FPSO uptime across Jubilee and TEN averaged 97 per cent during the year.
Financially, the group posted 2025 revenue of c.$847 million (including c.$19 million hedge costs), equivalent to approximately Sh109.3 billion in revenue and Sh2.45 billion in hedge costs at an average realised oil price of Sh8,746.20per barrel.
Free cash flow for the year was “c.$100 million,” about Sh12.9 billion. The company attributed the reduction from earlier guidance to delays including the second instalment of proceeds from the Kenya disposal ($40 million),” around Sh5.16 billion, and delay in receipt of cash calls (c.$40 million) and gas payments (c.$100 million) from the Government of Ghana.”
At year-end, “Government of Ghana receivables as at December 31, 2025, were c.$225 million net to Tullow (pre-tax),” equivalent to roughly Sh29.03 billion.
Year-end net debt stood at “c.$1.35 billion,” about Sh174.15 billion, while free cash was reported at $322 million, or approximately Sh41.54 billion.
On the strategic front, Tullow confirmed that on February 20, 2026, the extension of its West Cape Three Points and Deep Water Tano Petroleum Agreements, which cover the Jubilee and TEN fields, was ratified by the Ghanaian Parliament. The agreements have been extended to December 31, 2040.
The company also announced that it had signed a Sale and Purchase Agreement to acquire the TEN FPSO on behalf of the joint venture for a gross consideration of $205 million ($125.6 million net to Tullow),” equivalent to approximately Sh26.45 billion gross and Sh16.2 billion net. Completion is expected at the end of the first quarter of 2027.
In Kenya, Tullow said it had completed the sale of its entire working interest for $40 million upfront (Sh5.16 billion) and expects a further $40 million upon ratification of the Field Development Plan.
Looking ahead, Tullow expects 2026 production to average 34-42 kboepd. Capital expenditure is forecast at “c.$200 million” (Sh25.8 billion), with decommissioning expenditure of about Sh3.23 billion.
The company said that following the refinancing transaction, it expects liquidity headroom of free cash and undrawn facilities in excess of $200 million,” equivalent to more than Sh25.8 billion, providing a buffer against downside risks as it continues to focus on operational efficiency and cash flow resilience.
