Tullow Oil has appointed Richard Miller as Interim Chief Executive Officer and Chief Financial Officer, effective 14 February 2025, following the previously announced departure of Rahul Dhir.
The company confirmed that Dhir will step down from the Board on the same date but will remain available to the business until his notice period ends on 5 June 2025 to ensure a smooth transition.
The search for a permanent CEO is progressing, and the Board plans to provide further updates in due course.
Leadership Transition and Strategic Focus
Phuthuma Nhleko, Non-Executive Chairman, expressed gratitude for Dhir’s contributions, stating: “Once again, I would like to thank Rahul for his hard work and dedication to Tullow, and we wish him every success in the future. He will forever be a friend of Tullow. The appointment of Richard on an interim basis allows Tullow to focus on the delivery of its near-term objectives and effect a smooth transition to a full-time CEO in due course.”
Mr Dhir, reflecting on his tenure, commented: “It’s been a privilege to serve Tullow and work with so many talented colleagues. With a strong pan-African platform and an improving balance sheet, Tullow is well-positioned as a trusted partner and responsible operator in Africa to deliver the next phase of growth.”
Operational and Financial Performance
Tullow’s full-year working interest production averaged 61.2 thousand barrels of oil equivalent per day (kboepd), with its flagship Jubilee field contributing 33.9 kboepd net. The TEN field produced 10.2 kboepd net, while non-operated assets in Gabon and Côte d’Ivoire added 10.6 kboepd. Notably, the Jubilee drilling campaign was completed six months ahead of schedule and without safety incidents, while the FPSO uptime across the Jubilee and TEN fields averaged 97%.
On the financial front, the company maintained discipline, with capital expenditure of $230 million and decommissioning costs of $60 million, both in line with guidance. The successful resolution of a long-standing Ghana Branch Profits Remittance Tax arbitration removed a $320 million contingent liability, reinforcing the company’s contractual stability in the country.
2025 Outlook: Growth and Capital Returns in Sight
Tullow expects working interest production to average between 50 and 55 kboepd in 2025, including gas production of around 6 kboepd. A planned two-week maintenance shutdown at Jubilee in the first half of the year will have a modest 4% impact on annual output.
To support long-term production, the company is undertaking a 4D seismic survey across the Jubilee and TEN fields, which will guide future drilling locations. Tullow plans to restart drilling in Ghana in May 2025 with the Noble Venturer rig, targeting two new Jubilee wells that are expected to come on stream in the third quarter.
Further efficiency measures are underway, including a cost-base optimisation programme that is expected to yield $10 million in annual savings, reducing cash net general and administrative costs to $40 million. The company is also evaluating potential disposals of non-core assets to accelerate its deleveraging strategy and reduce net debt below $1 billion.
Capital expenditure for 2025 is projected at $250 million, with 60% directed to Jubilee, 30% to non-operated assets, and 10% to TEN, Kenya, and exploration activities. The company also expects to spend $30 million on decommissioning, split between the UK, Ghana, and Gabon.
Strategic Transition and Future Plans
With Miller at the helm on an interim basis, Tullow remains focused on sustaining operational excellence, improving financial resilience, and positioning itself for renewed growth and shareholder returns. The company plans to refinance its debt and streamline its capital structure during 2025. Management intends to repay its 2025 notes at maturity through a combination of cash reserves and funding from its Glencore facility.
Following the refinancing and leadership transition, Tullow plans to outline a framework for capital returns and explore inorganic growth opportunities across Africa. The company’s estimated 2C resources of around 700 million barrels of oil equivalent represent a significant opportunity to convert contingent resources into reserves and sustain long-term production.
