Tullow Oil has reported a loss after tax of $61 million for the first half of 2025, marking a sharp turnaround from the $196 million profit recorded during the same period in 2024. The setback was primarily driven by falling oil prices, reduced production volumes, and increased maintenance expenditures.

The company’s revenue dropped to $524 million, down from $759 million in the first half of 2024. This decline reflects a lower average realised oil price of $69.0 per barrel, compared to $77.7 per barrel a year earlier, as well as a drop in production volumes.

Tullow’s working interest production averaged 50,000 barrels of oil equivalent per day (kboepd) during the reporting period, down from 63.7 kboepd in the same period last year. Excluding its operations in Gabon, revenue stood at $411 million, with production averaging 40.6 kboepd.

Gross profit fell sharply to $218 million, compared to $460 million in the first half of 2024. Free cash flow was negative $188 million, largely due to the timing of tax payments and increased maintenance activities at the Jubilee field. Capital expenditure decreased to $103 million from $157 million, while decommissioning costs edged up slightly to $13 million.

As of June 30, 2025, Tullow’s net debt was $1.6 billion, a slight improvement from $1.7 billion a year earlier. The company’s cash gearing ratio stood at 1.9 times net debt to EBITDAX—or 2.1 times excluding Gabon—down from 2.3 times at the end of 2024. However, liquidity headroom narrowed significantly to $0.2 billion, compared to $0.7 billion in the previous year.

Richard Miller, Tullow’s Chief Financial Officer and Interim CEO, reiterated the company’s focus on its core strategic pillars: capital restructuring, production optimisation, reserve growth, and cost management.

“We achieved a significant milestone by signing a Memorandum of Understanding in Ghana to extend our production licences for both the Jubilee and TEN fields to 2040,” Miller noted.

He added that drilling activities have resumed, with the first of two planned 2025 production wells at Jubilee now online, delivering better-than-expected results in terms of net pay. Advanced 4D seismic data is currently being used to support future well planning, with additional insights expected from a fourth-quarter Ocean Bottom Node (OBN) seismic survey.

Miller also reported that the company has realised $300 million from recent asset sales, including the completion of its divestment in Kenya, as part of its ongoing portfolio optimisation strategy.

Looking ahead, Tullow anticipates improved performance in the second half of the year, supported by tighter cost controls, operational efficiency gains, and continued efforts to refinance its balance sheet.