Tullow Oil posts $101m half-year loss despite production gains

Tullow Oil reported a US$101 million after-tax loss for the first half of 2026, marking a significant increase from the US$61 million loss registered during the same period in 2025. The financial report, disclosed to investors, highlighted the loss was primarily due to refinancing costs and related fees, including one-off transaction fees.

Despite this loss, the company generated a revenue of US$495 million and a gross profit of US$276 million. Tullow's turnaround strategy, which has shown progress in production, resulted in an average net production of 35.7 thousand barrels of oil per day (kbopd) in the first half of 2026. This success was credited to strong production from new wells, completed work during the 2025 Jubilee scheduled shutdown, FPSO uptime exceeding 99%, and production optimization activities.

These included dual-riser operations and riser-based gas lift. The company's gross oil production from the TEN fields averaged 14.8 kbopd, or 8.1 kbopd in net production, exceeding expectations. Tullow anticipates to produce 14 cargoes in 2026, with an increase of two Jubilee cargoes compared to their initial guidance from November 2025.

Six cargoes were delivered in the first half of the year, with eight more planned for the second half. Additionally, Tullow benefits from the government's decision to extend the development agreement covering the Jubilee and TEN fields, providing a stable investment environment and gas payment security. However, the company continues to navigate the consequences of a tax dispute with the Ghana Revenue Authority (GRA), following a London-based International Chamber of Commerce arbitration tribunal ruling in favor of the Ghanaian government.

Despite the ruling, Tullow's Finance Minister, Dr. Cassiel Ato Forson, emphasized the importance of Ghana receiving its due revenues and pledged to protect Tullow's operational and investment capabilities in the country.