Africa-focused oil and gas producer Tullow Oil Plc has upgraded its 2026 free cash flow forecast after stronger production from its offshore Ghana operations and improved oil prices boosted its financial performance in the first half of the year.
The London-listed company recorded average working interest production of approximately 43,700 barrels of oil equivalent per day (boepd) during the first six months of 2026, including about 7,500 boepd of gas.
Production from the Jubilee field averaged around 70,800 barrels of oil per day, while the TEN field produced approximately 14,800 barrels per day. Both figures were above the company’s expectations.
Tullow said three new wells drilled as part of its 2025-26 drilling programme delivered production in line with or above forecasts. The company attributed the strong performance partly to reservoir information obtained through 4D seismic surveys.
Operational efficiency also remained high, with the floating production, storage and offloading (FPSO) vessels serving the Jubilee and TEN fields recording average uptime of more than 99% during the period.
Tullow Oil Chief Executive Ian Perks said the company’s operational performance, combined with stronger oil prices, had improved its financial position and outlook.
Revenue for the first half of the year increased to approximately $496 million, including about $47 million in hedge costs. The average realised price before hedging for six crude oil cargoes was around $95 per barrel, while the average price after hedging stood at approximately $86 per barrel.
Tullow generated about $135 million in pre-financing cash flow and ended the period with free cash flow of approximately $4 million after accounting for interest payments and one-off refinancing expenses.
The company also reduced its gross debt by around $100 million to $1.6 billion by the end of June. Net debt stood at approximately $1.4 billion.
Based on the stronger first-half performance, Tullow has increased its full-year free cash flow guidance to between $170 million and $250 million, assuming an oil price range of $70 to $100 per barrel. The revised outlook is significantly higher than its previous forecast of $70 million to $175 million.
Tullow also expects its 2026 production to reach the upper end of its existing guidance range of 34,000-42,000 boepd.
The company plans to lift 14 crude oil cargoes during the year, two more than previously anticipated, further reflecting the stronger production outlook from its Ghanaian operations.