Tullow Oil (LON:TLW) told shareholders at its 2026 annual general meeting that it expects to finish the year at the high end of its production guidance, citing stronger operational performance, production optimization and new wells at the Jubilee field in Ghana.
Ian Perks, Tullow’s chief executive officer, said he was “encouraged by the momentum” shown in the first five months of 2026 and described the company as having made “tremendous progress” in building a more stable foundation for improved performance. Perks, who joined Tullow as CEO in September 2025, said the company’s focus remains on improving operational performance and cash flow management.
Ghana Relationship and Receivables in Focus
Perks said Tullow has strengthened its relationship with the government of Ghana, pointing to an agreement on a gas payment security mechanism, extensions to petroleum agreements and continuing discussions over outstanding receivables.
During the shareholder question-and-answer session, Chris Bullock, a shareholder, asked whether delayed payments from the Ghanaian government remained a problem for the company. Perks said Tullow recognized that receivables had been an issue but said the company had made progress, including through the new gas receivables security mechanism.
“By the end of this year, we expect to be in a much, much healthier position with the government receivables position,” Perks said. He added that Tullow is currently being paid for gas under the mechanism that has been put in place.
Richard Miller, Tullow’s chief financial officer, said receivables from the Ghanaian government stood at $220 million at the end of last year. He said the company had made “significant progress” on that amount so far in 2026.
Jubilee Field Described as “World-Class”
Shareholder Leon Bonney asked about the status and profitability of the Jubilee field. Perks acknowledged that Tullow had faced production challenges at Jubilee in the recent past but said performance had improved in 2026.
“I think it is a world-class asset. There’s no doubt about that by any standards,” Perks said. He said new wells brought on stream this year were performing well and that Tullow remained optimistic about additional wells, including one expected later in the week or early the following week, two more in July and a water injection well at the end of the campaign in September.
Perks said Tullow is also working with partners on a new drilling campaign aimed at the second half of next year. He added that recent 4D seismic and ocean bottom node survey data had improved the company’s understanding of the reservoir and would support current and future drilling campaigns.
Miller said the total operating cost per barrel on Jubilee is about $8 and said Tullow’s most recent cargo was sold at $119 a barrel. He said the operating profit from Jubilee is “material.”
Debt, Market Capitalization and Oil Price Exposure
In response to a shareholder question, Miller said Tullow’s current market capitalization, based on its share price at the time of the meeting, was about $300 million. He said the company had net debt of about $1.4 billion at the end of last year, putting total enterprise value at around $1.7 billion.
Perks also highlighted Tullow’s exposure to higher oil prices. He said the company realized approximately $68 a barrel in 2025 and had realized approximately $96 a barrel so far in 2026 before hedging. He said the structure of Tullow’s commodity hedge program leaves “at least 60% access to oil price upside.”
The CEO said the refinancing completed earlier in the year was intended to give Tullow time to deliver value from its opportunity set. He also said the company is pursuing cost optimization, including the TEN FPSO purchase, which he said would support improved cash flow management.
Board Changes and Shareholder Concerns
Several shareholders raised concerns about Tullow’s share price performance and frequent board changes. Henry Chu, a shareholder, asked why the newly constituted board would do better given what he described as the company’s “very checkered history.”
Roald Goethe, Tullow’s independent non-executive chair, said the company was “truly at an inflection point” in its turnaround and that the board had been reconstituted to reflect the challenges facing the company. Perks said there was recognition within Tullow that performance “hasn’t been where it needs to be,” but said recent results provided reason for optimism.
Bullock also asked whether executive performance incentives were tied to the share price. Rebecca Wiles, an independent non-executive director, said Tullow’s long-term incentive plan includes linkage to the share price and is designed to align executive performance payouts with stakeholder interests.
The AGM concluded with Goethe moving to the formal voting process. He said votes on resolutions would be conducted by poll and that results would be announced to the London Stock Exchange and Ghana Stock Exchange and posted on the company’s website after the meeting.
About Tullow Oil (LON:TLW)
Tullow is an independent energy company that is building a better future through responsible oil and gas development in Africa. Tullow’s operations are focused on its core producing assets in Ghana. Tullow is committed to becoming Net Zero on its Scope 1 and 2 emissions by 2030, with a Shared Prosperity strategy that delivers lasting socio-economic benefits for its host nations. The Group is quoted on the London and Ghanaian stock exchanges (symbol: TLW).
For further information, please refer to: www.tullowoil.com.
