| Type | Public limited company |
|---|---|
| Traded as | LSE: TLW |
| Industry | Oil and gas exploration |
| Founded | 1985 |
| Headquarters | London, United Kingdom |
| Products | Oil and gas |
| Revenue | £1,089.8 million (2010)[1] |
| Operating income | £234.6 million (2010)[1] |
| Net income | £72.5 million (2010)[1] |
| Employees | 890 (2010)[1] |
| Website | www.tullowoil.com> |
Tullow Oil plc (LSE: TLW) is a global oil and gas exploration company headquartered in London, United Kingdom. It has interests in over 85 licences across 23 countries and in 2010 produced 58,100 barrels of oil equivalent per day.[2] Its largest activities are in Africa, where it has discovered new oil provinces in Ghana and Uganda, produces oil and gas in six countries and has exploration projects in 13 countries.[3][4] As at 30 June 2010 it had total proven commercial reserves of 290.5 million barrels (46,190,000 m3) of oil equivalent.[5]
Its primary listing is on the London Stock Exchange and it is a constituent of the FTSE 100 Index. It had a market capitalisation of approximately £12.5 billion as of 23 December 2011, making it the 30th-largest company on the London Stock Exchange.[6] It has a secondary listing on the Irish Stock Exchange.
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The Company was founded by Aidan Heavey in 1985 in the Republic of Ireland as a gas exploration business operating in Senegal.[7]
"It started in a small town called Tullow, about 35 miles south of Dublin, Ireland. In the 80s there were loads of companies starting off in the North Sea and Irish Celtic Sea. I was talking to a friend of mine in the bank one day and he was talking about small oil fields in Africa, which had been left behind by the majors and had no-one to work them. That is where the idea came from. I contacted another friend of mine in the World Bank who told me about a project in Senegal. They had some small gas fields that they were trying to get people to develop, so I setup Tullow Oil to rework those old fields. I knew nothing about the oil and gas industry at the time, which made it more challenging. No one thought Tullow would succeed because of my lack of knowledge of the industry, no major backers and I was starting a company in a country with no oil industry." – Aidan Heavey, CEO Tullow Oil plc.[8]
Following the signing of a licence agreement in Senegal in 1986, gas production and sales commenced in 1987. The same year Tullow listed its shares on the London Stock Exchange and Irish Stock Exchange and entered the FTSE 100 index.[7] In 1988, Tullow expanded its operations into the UK by acquiring exploration acreage and proven gas fields. In 1989, Tullow was awarded its first onshore UK licence and acquired exploration acreage in Spain, Italy and South Yemen.
In 1990, Tullow signed its first licence agreement in Pakistan, laying the foundations for the Group's South Asia portfolio of assets. Gas was discovered at the Sara field in Pakistan in 1994 and eventually brought on stream in 1999. New countries were added throughout the decade with licences acquired in Bangladesh, India, Côte d'Ivoire, Egypt and Romania. Activities were relinquished in four countries during the period.
2000 saw the beginning of a period of an accelerated pace of activity for Tullow, starting with the announcement of a £201 million[9] acquisition of producing gas fields and related infrastructure in the UK Southern North Sea from BP. This proved to be a catalyst for the Group's positioning as a leading player in the CMS and Thames/Hewett areas. In 2000, Tullow re-registered in the UK.
2001 to 2003 was the first defining and transformational period for the Group with the integration of its 2000 UK acquisition and growing production in core areas, as a result of re-investment in exploration and development activities. Strong increases in sales and profits were achieved and Tullow focused its financial resources and management attention on offshore UK, West Africa and South Asia.
The Group more than doubled in size in 2004, mainly as a result of the Energy Africa acquisition which was completed in May that year for $570m.[9] Overall Tullow spent US$1 billion on acquisitions and investments in 2004, creating a strong portfolio of international exploration, production and development assets. The integration of Energy Africa progressed well and Tullow delivered a very good operational and financial performance in 2005. It had two UK North Sea gas discoveries, one discovery in Gabon and one in Mauritania.
In 2006, the company began drilling its first well in Uganda and has since drilled circa 30 wells around the Lake Albert region.[10] There were five oil discoveries in Uganda during 2006, which established the existence of a working hydrocarbon basin and marked the beginning of proving up a world-class major new oil province there. Tullow also announced its largest acquisition ever with a US$1.1 billion bid for Hardman Resources Limited.[11] This transaction became effective in December 2006 and completed in January 2007.
In 2007, Tullow drilled two deepwater wells offshore Ghana discovering the massive Jubilee field[12] – its largest ever discovery and the beginnings of proving up a second new major oil province. 2008–2009 was its next phase of growth with a major focus on Africa, based on delivering first oil in Ghana in 2010.[13] and continuing to fast track the development of the significant resources discovered in Uganda.
In 2010, the Jubilee field was brought on to production in November[14], in record time, some 40 months after its discovery. A new major discovery was made at the Enyenra (Owo) and Tweneboa fields in Ghana during the year. These will be extensively appraised in 2011. In Uganda, Tullow has now discovered 1bn barrels of gross (P50) oil resources in the Lake Albert basin and will work with its new proposed partners, CNOOC and TOTAL, in developing a basin wide development plan in 2011.
Tullow’s operations are global and span Africa, Europe, South Asia and South America. Its average working interest production in 2010 was 58,100 boepd; making it one of the largest independent oil and gas exploration and production companies in Europe. Tullow has a large international portfolio of exploration and production assets including interests in over 90 licences in 23 countries[15] and in 2010 the Group achieved an 83% Exploration and Appraisal success rate.
In recent years its activity and investment has been focused on major projects in Ghana and Uganda, which together with an exploration portfolio across Africa, establishes it as Africa’s leading independent oil company.
In Ghana, the Jubilee field was discovered in 2007 and began producing first oil in November 2010. Jubilee is a world class oil field with estimated recoverable resources of up to 1 billion barrels (160,000,000 m3) with further potential. In addition to Jubilee, the two licences hold significant further exploration potential, which are currently being explored.
In Uganda, it has interests in three licences in the Lake Albert Rift Basin that were gained through the acquisition of Energy Africa in 2004 and subsequently of Hardman Resources in 2007. 1bn barrels of gross (P50) oil resources have been discovered to date, and with many prospects still to be drilled, Tullow believe the basin has an additional 1.5bn barrels of (P50) oil yet to find.
In 2011, Tullow will be embarking upon a high-impact exploration campaign including basin opening wells in Liberia.
Also in 2011 the company has bought into twenty five Dutch, North Sea Gas fields,[16] and made a significant oil discovery in French Guiana with the Zaedyus well.
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