Tullow Oil has reported a loss after tax of $101 million for the first half of 2026, slightly higher than the $61 million loss recorded in the same period in 2025. 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 $495 million and gross profit of $276 million during the period.
The company's 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. This was attributed to strong production from new wells and work completed during the successful 2025 Jubilee scheduled shutdown. The company also highlighted FPSO uptime averaging over 99% and production optimisation activities.
Tullow's gross oil production from the TEN fields averaged 14.8 kbopd, equivalent to net production of 8.1 kbopd, which was above expectations. The company 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's other turnaround measures are also expected to support the long-term development of the Jubilee and TEN fields. Tullow highlighted the government's decision to extend the development agreement covering the Jubilee and TEN fields, providing a stable investment environment.
The extension also includes a gas payment security mechanism and heads of terms for the potential supply of gas from the TEN fields. This development 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 $400 million tax charge against Tullow Oil.
Finance Minister Dr Cassiel Ato Forson stated that the government will ensure Ghana receives revenues due from Tullow Ghana Limited following the country's victory in the international tax arbitration. He also emphasized the need to safeguard the company's ability to sustain its operations and investments in Ghana, describing Tullow as "a vital partner to Ghana" and the country's largest petroleum producer.
The outcome of the tax dispute and the company's production gains demonstrate the complexities of Tullow Oil's current situation. As the company moves forward, it will need to balance its financial performance with its operational goals in Ghana. The government's support for Tullow's operations and the extension of the development agreement are expected to play a crucial role in the company's future plans.
Key points
- Tullow Oil recorded a loss after tax of $101 million for the first half of 2026.
- The company's net production averaged 35.7 thousand barrels of oil per day (kbopd) in the first half of 2026.
- The Ghanaian government extended the development agreement covering the Jubilee and TEN fields, providing a stable investment environment for Tullow Oil.
