Tullow Oil PLC has announced a significant increase in profits from its operations in Ghana, reporting a profit before tax of $411 million for the first six months of 2024.
This marks a more than 50% rise compared to the $266 million reported during the same period in 2023. The details were disclosed in the company’s half-year results released to investors on August 7, 2024.
In addition to the profit surge, Tullow paid $144 million in taxes to the Ghanaian government for its operations from January to June 2024.
This profit is the highest recorded by any of Tullow’s subsidiaries this year. The financial success comes amid an ongoing dispute with the Ghana Revenue Authority over tax payments related to operations between 2022 and 2023.
Ghana’s offshore oil facilities performed strongly, maintaining a 97% efficiency level in the first half of 2024.
The Jubilee oil field produced an average of 90,100 barrels of oil per day, slightly below expectations, while production from the Tweneboah Enyenra Ntomme (TEN) oil fields surpassed forecasts, averaging 19,000 barrels per day.
Gas production in Ghana averaged 6,500 barrels of oil equivalent per day (boepd) during the first half of 2024.
The existing Gas Sales Agreement, which sets the price at $3.00 per million British thermal units (mmbtu), will remain in place until the fourth quarter of 2025.
Tullow is currently in discussions to explore additional opportunities for selling gas to third parties, potentially creating a significant long-term revenue stream.
