West Africa-focused oil producer Tullow Oil has raised its full-year free cash flow forecast and expects production to reach the upper end of its guidance range, supported by strong operational performance from its Ghana assets and improved oil price realisations.
The company announced that it now expects annual free cash flow of between US$170 million and US$250 million, up from its previous forecast of US$70 million to US$175 million. Tullow attributed the improved outlook to higher production levels, stronger realised oil prices and continued progress in recovering outstanding payments owed by Ghana’s government.
The company expects annual production to reach the top end of its forecast range of 34,000 to 42,000 barrels of oil equivalent per day, reflecting improved performance from its key offshore fields in Ghana.
Tullow has been restructuring its business around Ghana, following the sale of assets in Gabon and Kenya as part of efforts to simplify operations and strengthen its financial position. The company also secured licence extensions for its flagship Jubilee and TEN oil fields, allowing production activities and further drilling opportunities to continue until 2040.
The company reported that it achieved an average realised oil price of approximately US$95 per barrel before hedging across six cargoes during the first half of the year. After accounting for hedging arrangements, the realised price stood at around US$86 per barrel, with hedging costs estimated at US$47 million.
Tullow’s improved outlook highlights the continued importance of Ghana’s offshore oil sector to the company’s long-term strategy. The Jubilee and TEN fields remain central to its production portfolio, providing a foundation for further investment and operational growth.
The company’s focus on Ghana comes as international energy firms continue to reassess their portfolios across Africa, prioritising assets with strong production potential, stable operating environments and opportunities for long-term value creation.