Tullow Oil plc Tullow Oil plc 2021 Full Year Results 9 March 2022
2021 Full Year Results Agenda Presenters Rahul Dhir Overview Financial Chief Executive Officer Les Wood Operations Conclusion Chief Financial Officer Tullow Oil plc 2021 Full Year Results Slide 3
OVERVIEW Tullow Oil plc 2021 Full Year Results
Transformational 2021 is a solid foundation for future growth Transformational 2021 Positioning for growth in 2022 Clear path to value creation Balance sheet refinanced Investment in Jubilee to increase Business plan set to deliver…
FINANCIAL Tullow Oil plc 2021 Full Year Results
Delivering our stated financial strategy Comprehensive refinancing completed 1.8bn Bond issue 700m We have the Material portfolio management Completed asset sales financial stability 125m and flexibility to Significant cost base…
Significant free cash flow upside in current oil price environment Material cash flow drivers year-to-date 2022 free cash flow oil price sensitivities (m) 89/bbl average realised oil price in January and 200 February c.40 150…
Asset base expected to deliver underlying cash flow growth Sources and uses of cash (m) Business plan to deliver 2021 Actuals 2025 Potential Step up in production and further 1200 1200 cost reduction 1100 1100 1000 1000 Continued strong…
Deleveraging accelerated Sources and uses of cash 2022-25 (75/bbl flat nominal) Value focused capital allocation (%) Existing Exploration wells 4.0 c.10% c.10% Ability to adjust capital spend to Infill 3.0 c.20% respond to oil…
OPERATIONS Tullow Oil plc 2021 Full Year Results
Commitment to health and safety Health and safety Safety Performance Marked improvement in EHS performance, despite Lost time injury rate (LTIR) Total recordable injury rate (TRIR) IOGP LTIR IOGP TRIR increased activity levels,…
Focus on a sustainable future Sustainable value creation in 2021 2030 Net Zero Pathway (Scope 1 & 2) Shared Prosperity 207 million local supplier spend in 2021, 5-year total 1.2 billion First 100% Ghanaian owned, crewed and flagged…
Delivering reliable production performance Wells Uptime Five wells brought on stream in 2021: two Jubilee producers, one High efficiency from Ghana FPSOs, averaging 97% Jubilee gas injector, one TEN gas injector and Simba infill…
Operational turnaround: opex and drilling Sustainable reduction in operating costs (m) 2021 wells: average cost reduction of 20% Jubilee1 TEN 75 500 200 Rig non- 400 productive time 60 300 below 5% 100 compared c.10m 200 to…
Significant Ghana resource potential Jubilee gross oil volumes (mmbbls) TEN gross oil volumes (mmbbls) 2.0 billion bbls in c. c.1.5 billion bbls in place with only 17% place with only 7% recovered to YE21 recovered to YE21…
Highly profitable largely undeveloped areas east of Jubilee core Significant recovery potential (mmbbls) JNE 6% JSE 11% Infill EUR 9% Produced Excluding undefined 47% contingent and prospective resource projects Existing…
Jubilee production growth from addition of undeveloped areas Capex allocation 2022-25 (%) Gross production growth 2021-25 (kbopd) c.7% CAGR Jubilee NE Infill c.30% Jubilee SE c.50% 100 kbopd c.87 kbopd Existing wells Jubilee NE…
TEN investment focused on material resource potential Significant recovery potential (mmbbls) 10 km TEN Development & Production Area Defined projects 31% Produced EUR 36% Excluding undefined contingent and prospective…
TEN production growth from new defined projects Capex allocation 2022-25 (m) Gross production growth 2021-25 (kbopd) 50 kbopd Prospective Defined projects Infill c.25% c.70% c.9% CAGR1 Defined projects Existing wells c.5%…
Low risk, stable production from non-operated portfolio Capex allocation 2022-25 (m) Net production 2021-25 (kboepd) Prospective c.17 kboepd Stable production base Defined projects c.60% c.25% Prospective Existing wells c.15%…
Catalysts to unlock value Jubilee: Stable gas supply and tangible benefits Realising value from Kenya Delivering 100mmscfd, c.30% of Ghana thermal power generation Expect to fulfil Foundation Gas (200BCF) by YE22, yielding 2bn to Ghana…
Exploration refocused to deliver value West Africa: Guyana: Enhancing value of core producing areas Unlocking prospective resource base in emerging basins Focus on near-field and infrastructure-led exploration Beebei-Potaro exploration…
CONCLUSION Tullow Oil plc 2021 Full Year Results
A transformed business positioned to deliver growth Rich portfolio of high return opportunities Operating performance and cost c.1.6bn capex 2022-25 O&M transformation Investment in Jubilee to increase production Strong drilling…
Tullow Oil plc 9 Chiswick Park, 566 Chiswick High Road London W4 5XT United Kingdom Tel: +44 (0)20 3249 9000 Email: irtullowoil.com Web: www.tullowoil.com Follow Tullow on:
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