Tullow Oil says ongoing drilling activities in Ghana are delivering positive results, strengthening expectations that the company’s 2026 production will reach the upper end of its guidance range.
In a trading update released ahead of its Annual General Meeting on June 10, 2026, the company reported strong operational performance across its Ghana assets, with production and drilling activities progressing according to plan.
Group working interest production averaged 43.1 thousand barrels of oil equivalent per day (boepd) between January and May, including 7.3 thousand boepd of gas production. The performance places Tullow on track to achieve production at the higher end of its previously announced guidance range of 34.0 thousand to 42.0 thousand boepd for the year.
Chief Executive Officer Ian Perks said the company has made significant progress since the beginning of the year, particularly in Ghana, where its drilling campaign continues to generate encouraging outcomes.
According to him, the results achieved so far have strengthened confidence in Tullow’s ability to deliver production levels at the upper end of its target range.
The company’s six-well Jubilee drilling programme remains on schedule. The third production well, J76-P, is expected to begin producing this week, with logging results indicating strong production potential.
Two additional producer wells, J77-P and J50-P, are scheduled to come onstream in June and July respectively, while the final well, a water injection well, is expected to begin operations in September.
Tullow also highlighted the reliability of its offshore facilities, reporting uptime of more than 99 percent across both the Jubilee and TEN Floating Production Storage and Offloading (FPSO) vessels between January and May.
In a major development for its long-term plans, the company announced that Ghana’s Minister of Energy has approved the Greater Jubilee Plan of Further Development. The approval paves the way for the drilling of up to 20 additional wells after the current campaign concludes.
The move is expected to support sustained production growth from the Jubilee field, which remains the cornerstone of Tullow’s operations in Ghana and a key contributor to its revenue generation.
Mr Perks said the company remains focused on unlocking the full value of its Ghanaian assets while advancing its broader growth strategy.
He noted that strong production levels, coupled with favourable oil prices, position Tullow to generate substantial free cash flow in 2026 and beyond.
The company maintained its free cash flow guidance of between US$70 million and US$175 million for 2026, based on an oil price range of US$70 to US$100 per barrel. Tullow indicated that free cash flow could rise to between US$110 million and US$230 million if an additional cargo is lifted in December.
Average pre-hedge oil price realisations from five cargos delivered between January and May stood at approximately US$96 per barrel, while post-hedge realisations averaged about US$87 per barrel. The company’s May Jubilee cargo achieved a particularly strong price of US$119 per barrel.
Tullow said its hedging strategy protects around 60 percent of downside price risk while still allowing the company to benefit from a significant portion of any price increases during the year.
Capital expenditure guidance remains unchanged at approximately US$200 million, while decommissioning expenditure is expected to remain around US$25 million.
The latest update comes as Ghana’s petroleum industry receives renewed attention from policymakers seeking to increase production, strengthen local participation and maximise the economic benefits of the country’s oil resources.
For Ghana, stronger output from the Jubilee and TEN fields could boost petroleum revenues, export earnings and foreign exchange inflows. It could also enhance investor confidence in the upstream sector at a time when the country is seeking additional investment to support future exploration and development.
With production tracking strongly, operational reliability remaining high and further drilling plans receiving government approval, Tullow appears well positioned for a stronger performance in 2026, provided oil prices remain supportive and project execution continues on schedule.
