Tullow Oil expects its Ghana drilling campaign to push 2026 group production towards the top end of its guidance range of 34,000 to 42,000 barrels of oil equivalent per day. The company reported strong progress with its drilling activities and encouraging results. This projection was part of a trading update issued on June 10, 2026.
The improved outlook is driven by high operational reliability from Tullow’s Ghana assets, particularly the Jubilee and TEN fields. Facility uptime across both Floating Production Storage and Offloading (FPSO) vessels averaged over 99.00 percent from January to May. This sustained uptime performance reinforces confidence in meeting higher production targets.
This development is significant for Ghana’s broader economic landscape, particularly its petroleum sector. Increased production translates into higher crude oil exports, boosting the nation’s foreign exchange earnings. It also directly impacts government petroleum receipts, which are crucial for financing public expenditure and economic development. Ghana's petroleum sector is currently receiving renewed policy attention, focusing on production optimisation and using oil revenues for fiscal consolidation.
Tullow’s Chief Executive Officer, Ian Perks, stated, “Tullow has performed strongly since the outset of 2026, marked by significant delivery across the business. Our drilling campaign in Ghana continues to progress well with encouraging results to date reinforcing our growing confidence in delivering production at the higher end of our guidance range.” The company’s January to May group working interest production stood at 43.10 thousand barrels of oil equivalent per day, including 7.30 thousand barrels of oil equivalent per day of gas.
The company's drilling schedule for 2026 remains on track. The third of six Jubilee wells, J76-P, is expected to come onstream this week. Logging results from this well support a strong production profile. Two additional producer wells, J77-P and J50-P, are also scheduled to come onstream in June and July. The final well, a water injection well, will begin production in September. This consistent pipeline of new wells is key to sustaining and increasing output.
Furthermore, the Minister of Energy has approved the Greater Jubilee Plan of Further Development. This approval confirms support for drilling up to 20 additional wells in Jubilee after the current campaign concludes. This long-term plan is critical for Tullow’s future growth strategy in Ghana, as Jubilee remains a central part of its production base and cash generation.
On the financial front, Tullow maintained its 2026 free cash flow guidance at US$70 million to US$175 million, based on an oil price range of US$70 to US$100 per barrel. This range could increase to US$110 million to US$230 million if an additional cargo is delivered in December 2026. Average pre-hedge oil price realisations for five cargos between January and May were approximately US$96 per barrel. The company’s commodity hedge portfolio protects 60.00 percent of downside risk while retaining access to 60.00 percent of upside in 2026.
For Ghana, stronger production from Jubilee and TEN implies increased petroleum receipts and export earnings. This boosts foreign exchange inflows and enhances investor confidence in the upstream petroleum sector. Decision-makers will closely monitor how these increased revenues contribute to national development goals. For Tullow, the focus will be on maintaining operational performance, delivering remaining wells on schedule, and converting higher oil prices into stronger free cash flow. The approval of further drilling solidifies the long-term potential for sustained oil and gas production in Ghana.