Tullow Oil plc is working closely with the Government of Ghana to recover over $100 million in outstanding gas payments, a move critical to the company’s cash flow and operations in West Africa.
The London-listed oil producer, which operates Ghana’s Jubilee and TEN oil fields, said total receivables from the Ghanaian government, including TEN development debt and overdue cash calls, stood at more than $200 million at the end of October 2025. While Tullow has been able to maintain production, the delay in payment is a significant factor in its financial planning.
Tullow expects 2025 free cash flow of around $300 million, assuming oil prices of $65 per barrel, but a portion of that hinges on the timely recovery of government arrears. The company’s capital expenditure for 2025 remains approximately $185 million, with decommissioning costs of around $20 million.
Despite the financial uncertainty, Tullow continues to operate steadily in Ghana. Jubilee oil production averaged about 61,000 barrels per day in 2025, while TEN produced around 16,000 barrels per day. Both fields have benefitted from new wells drilled this year, offsetting natural declines in older wells.
The company has also signed a Memorandum of Understanding with Ghana to extend Jubilee and TEN oil licences to 2040, with final agreements still in progress. These steps aim to secure long-term production and investment in the country.
Tullow’s recovery of outstanding payments is vital not only for the company’s liquidity but also for continued investment in Ghana’s oil sector, which provides significant revenue and employment opportunities.
According to Tullow, the company is engaging with Ghanaian authorities and exploring all options to resolve the situation, emphasizing the importance of timely payments for operational stability and future growth.
“Tullow is working closely with the government and its various agencies to resolve this situation,” the company said.
