Tullow Oil
Encyclopedia
Tullow Oil plc is a global oil
and gas
exploration company headquartered in London, United Kingdom. It has interests in over 85 licences across 23 countries and in 2010 produced 58,100 barrels of oil equivalent per day. Its largest activities are in Africa, where it has discovered new oil provinces in Ghana
and Uganda
, produces oil and gas in six countries and has exploration projects in 13 countries. As at 30 June 2010 it had total proven commercial reserves of 290.5 Moilbbl of oil equivalent.
Its primary listing is on the London Stock Exchange
and it is a constituent of the FTSE 100 Index
. It has a secondary listing on the Irish Stock Exchange
.
in 1985 in the Republic of Ireland
as a gas exploration business operating in Senegal
.
"It started in a small town called Tullow, about 35 miles south of Dublin, Ireland. In the 80s there were loads of companies starting off in the North Sea and Irish Celtic Sea. I was talking to a friend of mine in the bank one day and he was talking about small oil fields in Africa, which had been left behind by the majors and had no-one to work them. That is where the idea came from. I contacted another friend of mine in the World Bank who told me about a project in Senegal. They had some small gas fields that they were trying to get people to develop, so I setup Tullow Oil to rework those old fields. I knew nothing about the oil and gas industry at the time, which made it more challenging. No one thought Tullow would succeed because of my lack of knowledge of the industry, no major backers and I was starting a company in a country with no oil industry." – Aidan Heavey, CEO Tullow Oil plc.
Following the signing of a licence agreement in Senegal in 1986, gas production and sales commenced in 1987. The same year Tullow listed its shares on the London Stock Exchange
and Irish Stock Exchange
and entered the FTSE 100 index
. In 1988, Tullow expanded its operations into the UK by acquiring exploration acreage and proven gas fields. In 1989, Tullow was awarded its first onshore UK licence and acquired exploration acreage in Spain, Italy and South Yemen.
In 1990, Tullow signed its first licence agreement in Pakistan
, laying the foundations for the Group's South Asia portfolio of assets. Gas was discovered at the Sara field in Pakistan in 1994 and eventually brought on stream in 1999. New countries were added throughout the decade with licences acquired in Bangladesh
, India, Côte d'Ivoire
, Egypt and Romania
. Activities were relinquished in four countries during the period.
2000 saw the beginning of a period of an accelerated pace of activity for Tullow, starting with the announcement of a £201 million acquisition of producing gas fields and related infrastructure in the UK Southern North Sea
from BP
. This proved to be a catalyst for the Group's positioning as a leading player in the CMS and Thames/Hewett areas. In 2000, Tullow re-registered in the UK.
2001 to 2003 was the first defining and transformational period for the Group with the integration of its 2000 UK acquisition and growing production in core areas, as a result of re-investment in exploration and development activities. Strong increases in sales and profits were achieved and Tullow focused its financial resources and management attention on offshore UK, West Africa and South Asia.
The Group more than doubled in size in 2004, mainly as a result of the Energy Africa acquisition which was completed in May that year for $570m. Overall Tullow spent US$1 billion on acquisitions and investments in 2004, creating a strong portfolio of international exploration, production and development assets.
The integration of Energy Africa progressed well and Tullow delivered a very good operational and financial performance in 2005. It had two UK North Sea gas discoveries, one discovery in Gabon
and one in Mauritania
.
In 2006, the company began drilling its first well in Uganda
and has since drilled circa 30 wells around the Lake Albert region. There were five oil discoveries in Uganda during 2006, which established the existence of a working hydrocarbon basin and marked the beginning of proving up a world-class major new oil province there. Tullow also announced its largest acquisition ever with a US$1.1 billion bid for Hardman Resources Limited. This transaction became effective in December 2006 and completed in January 2007.
In 2007, Tullow drilled two deepwater wells offshore Ghana discovering the massive Jubilee field – its largest ever discovery and the beginnings of proving up a second new major oil province. 2008–2009 was its next phase of growth with a major focus on Africa, based on delivering first oil in Ghana in 2010. and continuing to fast track the development of the significant resources discovered in Uganda.
In 2010, the Jubilee field was brought on to production in November, in record time, some 40 months after its discovery. A new major discovery was made at the Enyenra (Owo) and Tweneboa fields in Ghana during the year. These will be extensively appraised in 2011. In Uganda, Tullow has now discovered 1bn barrels of gross (P50) oil resources in the Lake Albert basin and will work with its new proposed partners, CNOOC and TOTAL, in developing a basin wide development plan in 2011.
and production
companies in Europe. Tullow has a large international portfolio of exploration and production assets including interests in over 90 licences in 23 countries and in 2010 the Group achieved an 83% Exploration and Appraisal success rate.
In recent years its activity and investment has been focused on major projects in Ghana
and Uganda
, which together with an exploration portfolio across Africa, establishes it as Africa’s leading independent oil company.
In Ghana, the Jubilee field was discovered in 2007 and began producing first oil in November 2010. Jubilee is a world class oil field with estimated recoverable resources of up to 1 Goilbbl with further potential. In addition to Jubilee, the two licences hold significant further exploration potential, which are currently being explored.
In Uganda, it has interests in three licences in the Lake Albert Rift Basin that were gained through the acquisition of Energy Africa in 2004 and subsequently of Hardman Resources in 2007. 1bn barrels of gross (P50) oil resources have been discovered to date, and with many prospects still to be drilled, Tullow believe the basin has an additional 1.5bn barrels of (P50) oil yet to find.
In 2011, Tullow will be embarking upon a high-impact exploration campaign including basin opening wells in Liberia
.
Also in 2011 the company has bought into twenty five Dutch, North Sea Gas fields, and made a significant oil discovery in French Guiana with the Zaedyus well.
Petroleum
Petroleum or crude oil is a naturally occurring, flammable liquid consisting of a complex mixture of hydrocarbons of various molecular weights and other liquid organic compounds, that are found in geologic formations beneath the Earth's surface. Petroleum is recovered mostly through oil drilling...
and gas
Natural gas
Natural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...
exploration company headquartered in London, United Kingdom. It has interests in over 85 licences across 23 countries and in 2010 produced 58,100 barrels of oil equivalent per day. Its largest activities are in Africa, where it has discovered new oil provinces in Ghana
Ghana
Ghana , officially the Republic of Ghana, is a country located in West Africa. It is bordered by Côte d'Ivoire to the west, Burkina Faso to the north, Togo to the east, and the Gulf of Guinea to the south...
and Uganda
Uganda
Uganda , officially the Republic of Uganda, is a landlocked country in East Africa. Uganda is also known as the "Pearl of Africa". It is bordered on the east by Kenya, on the north by South Sudan, on the west by the Democratic Republic of the Congo, on the southwest by Rwanda, and on the south by...
, produces oil and gas in six countries and has exploration projects in 13 countries. As at 30 June 2010 it had total proven commercial reserves of 290.5 Moilbbl of oil equivalent.
Its primary listing is on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
and it is a constituent of the FTSE 100 Index
FTSE 100 Index
The FTSE 100 Index, also called FTSE 100, FTSE, or, informally, the footsie , is a share index of the 100 most highly capitalised UK companies listed on the London Stock Exchange....
. It has a secondary listing on the Irish Stock Exchange
Irish Stock Exchange
-History:The Irish Stock Exchange is Ireland's only stock exchange and has been in existence since 1793. It is an Irish private company limited by guarantee. It was first recognised by legislation in 1799 when the Irish Parliament passed the Stock Exchange Act...
.
History
The Company was founded by Aidan HeaveyAidan Heavey
Aidan Joseph Heavey is the founder of Tullow Oil, one of Europe's largest oil businesses.-Career:From Castlerea, Co. Roscommon and educated at Clongowes Wood College in County Kildare and at University College, Dublin, Aidan Heavey trained with R. J. Kidney & Co. from 1974 to 1978 when he...
in 1985 in the Republic of Ireland
Republic of Ireland
Ireland , described as the Republic of Ireland , is a sovereign state in Europe occupying approximately five-sixths of the island of the same name. Its capital is Dublin. Ireland, which had a population of 4.58 million in 2011, is a constitutional republic governed as a parliamentary democracy,...
as a gas exploration business operating in Senegal
Senegal
Senegal , officially the Republic of Senegal , is a country in western Africa. It owes its name to the Sénégal River that borders it to the east and north...
.
"It started in a small town called Tullow, about 35 miles south of Dublin, Ireland. In the 80s there were loads of companies starting off in the North Sea and Irish Celtic Sea. I was talking to a friend of mine in the bank one day and he was talking about small oil fields in Africa, which had been left behind by the majors and had no-one to work them. That is where the idea came from. I contacted another friend of mine in the World Bank who told me about a project in Senegal. They had some small gas fields that they were trying to get people to develop, so I setup Tullow Oil to rework those old fields. I knew nothing about the oil and gas industry at the time, which made it more challenging. No one thought Tullow would succeed because of my lack of knowledge of the industry, no major backers and I was starting a company in a country with no oil industry." – Aidan Heavey, CEO Tullow Oil plc.
Following the signing of a licence agreement in Senegal in 1986, gas production and sales commenced in 1987. The same year Tullow listed its shares on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
and Irish Stock Exchange
Irish Stock Exchange
-History:The Irish Stock Exchange is Ireland's only stock exchange and has been in existence since 1793. It is an Irish private company limited by guarantee. It was first recognised by legislation in 1799 when the Irish Parliament passed the Stock Exchange Act...
and entered the FTSE 100 index
FTSE 100 Index
The FTSE 100 Index, also called FTSE 100, FTSE, or, informally, the footsie , is a share index of the 100 most highly capitalised UK companies listed on the London Stock Exchange....
. In 1988, Tullow expanded its operations into the UK by acquiring exploration acreage and proven gas fields. In 1989, Tullow was awarded its first onshore UK licence and acquired exploration acreage in Spain, Italy and South Yemen.
In 1990, Tullow signed its first licence agreement in Pakistan
Pakistan
Pakistan , officially the Islamic Republic of Pakistan is a sovereign state in South Asia. It has a coastline along the Arabian Sea and the Gulf of Oman in the south and is bordered by Afghanistan and Iran in the west, India in the east and China in the far northeast. In the north, Tajikistan...
, laying the foundations for the Group's South Asia portfolio of assets. Gas was discovered at the Sara field in Pakistan in 1994 and eventually brought on stream in 1999. New countries were added throughout the decade with licences acquired in Bangladesh
Bangladesh
Bangladesh , officially the People's Republic of Bangladesh is a sovereign state located in South Asia. It is bordered by India on all sides except for a small border with Burma to the far southeast and by the Bay of Bengal to the south...
, India, Côte d'Ivoire
Côte d'Ivoire
The Republic of Côte d'Ivoire or Ivory Coast is a country in West Africa. It has an area of , and borders the countries Liberia, Guinea, Mali, Burkina Faso and Ghana; its southern boundary is along the Gulf of Guinea. The country's population was 15,366,672 in 1998 and was estimated to be...
, Egypt and Romania
Romania
Romania is a country located at the crossroads of Central and Southeastern Europe, on the Lower Danube, within and outside the Carpathian arch, bordering on the Black Sea...
. Activities were relinquished in four countries during the period.
2000 saw the beginning of a period of an accelerated pace of activity for Tullow, starting with the announcement of a £201 million acquisition of producing gas fields and related infrastructure in the UK Southern North Sea
North Sea
In the southwest, beyond the Straits of Dover, the North Sea becomes the English Channel connecting to the Atlantic Ocean. In the east, it connects to the Baltic Sea via the Skagerrak and Kattegat, narrow straits that separate Denmark from Norway and Sweden respectively...
from BP
BP
BP p.l.c. is a global oil and gas company headquartered in London, United Kingdom. It is the third-largest energy company and fourth-largest company in the world measured by revenues and one of the six oil and gas "supermajors"...
. This proved to be a catalyst for the Group's positioning as a leading player in the CMS and Thames/Hewett areas. In 2000, Tullow re-registered in the UK.
2001 to 2003 was the first defining and transformational period for the Group with the integration of its 2000 UK acquisition and growing production in core areas, as a result of re-investment in exploration and development activities. Strong increases in sales and profits were achieved and Tullow focused its financial resources and management attention on offshore UK, West Africa and South Asia.
The Group more than doubled in size in 2004, mainly as a result of the Energy Africa acquisition which was completed in May that year for $570m. Overall Tullow spent US$1 billion on acquisitions and investments in 2004, creating a strong portfolio of international exploration, production and development assets.
The integration of Energy Africa progressed well and Tullow delivered a very good operational and financial performance in 2005. It had two UK North Sea gas discoveries, one discovery in Gabon
Gabon
Gabon , officially the Gabonese Republic is a state in west central Africa sharing borders with Equatorial Guinea to the northwest, Cameroon to the north, and with the Republic of the Congo curving around the east and south. The Gulf of Guinea, an arm of the Atlantic Ocean is to the west...
and one in Mauritania
Mauritania
Mauritania is a country in the Maghreb and West Africa. It is bordered by the Atlantic Ocean in the west, by Western Sahara in the north, by Algeria in the northeast, by Mali in the east and southeast, and by Senegal in the southwest...
.
In 2006, the company began drilling its first well in Uganda
Uganda
Uganda , officially the Republic of Uganda, is a landlocked country in East Africa. Uganda is also known as the "Pearl of Africa". It is bordered on the east by Kenya, on the north by South Sudan, on the west by the Democratic Republic of the Congo, on the southwest by Rwanda, and on the south by...
and has since drilled circa 30 wells around the Lake Albert region. There were five oil discoveries in Uganda during 2006, which established the existence of a working hydrocarbon basin and marked the beginning of proving up a world-class major new oil province there. Tullow also announced its largest acquisition ever with a US$1.1 billion bid for Hardman Resources Limited. This transaction became effective in December 2006 and completed in January 2007.
In 2007, Tullow drilled two deepwater wells offshore Ghana discovering the massive Jubilee field – its largest ever discovery and the beginnings of proving up a second new major oil province. 2008–2009 was its next phase of growth with a major focus on Africa, based on delivering first oil in Ghana in 2010. and continuing to fast track the development of the significant resources discovered in Uganda.
In 2010, the Jubilee field was brought on to production in November, in record time, some 40 months after its discovery. A new major discovery was made at the Enyenra (Owo) and Tweneboa fields in Ghana during the year. These will be extensively appraised in 2011. In Uganda, Tullow has now discovered 1bn barrels of gross (P50) oil resources in the Lake Albert basin and will work with its new proposed partners, CNOOC and TOTAL, in developing a basin wide development plan in 2011.
Operations
Tullow’s operations are global and span Africa, Europe, South Asia and South America. Its average working interest production in 2010 was 58,100 boepd; making it one of the largest independent oil and gas explorationExploration
Exploration is the act of searching or traveling around a terrain for the purpose of discovery of resources or information. Exploration occurs in all non-sessile animal species, including humans...
and production
Extraction of petroleum
The extraction of petroleum is the process by which usable petroleum is extracted and removed from the earth.-Locating the oil field:Geologists use seismic surveys to search for geological structures that may form oil reservoirs...
companies in Europe. Tullow has a large international portfolio of exploration and production assets including interests in over 90 licences in 23 countries and in 2010 the Group achieved an 83% Exploration and Appraisal success rate.
In recent years its activity and investment has been focused on major projects in Ghana
Ghana
Ghana , officially the Republic of Ghana, is a country located in West Africa. It is bordered by Côte d'Ivoire to the west, Burkina Faso to the north, Togo to the east, and the Gulf of Guinea to the south...
and Uganda
Uganda
Uganda , officially the Republic of Uganda, is a landlocked country in East Africa. Uganda is also known as the "Pearl of Africa". It is bordered on the east by Kenya, on the north by South Sudan, on the west by the Democratic Republic of the Congo, on the southwest by Rwanda, and on the south by...
, which together with an exploration portfolio across Africa, establishes it as Africa’s leading independent oil company.
In Ghana, the Jubilee field was discovered in 2007 and began producing first oil in November 2010. Jubilee is a world class oil field with estimated recoverable resources of up to 1 Goilbbl with further potential. In addition to Jubilee, the two licences hold significant further exploration potential, which are currently being explored.
In Uganda, it has interests in three licences in the Lake Albert Rift Basin that were gained through the acquisition of Energy Africa in 2004 and subsequently of Hardman Resources in 2007. 1bn barrels of gross (P50) oil resources have been discovered to date, and with many prospects still to be drilled, Tullow believe the basin has an additional 1.5bn barrels of (P50) oil yet to find.
In 2011, Tullow will be embarking upon a high-impact exploration campaign including basin opening wells in Liberia
Liberia
Liberia , officially the Republic of Liberia, is a country in West Africa. It is bordered by Sierra Leone on the west, Guinea on the north and Côte d'Ivoire on the east. Liberia's coastline is composed of mostly mangrove forests while the more sparsely populated inland consists of forests that open...
.
Also in 2011 the company has bought into twenty five Dutch, North Sea Gas fields, and made a significant oil discovery in French Guiana with the Zaedyus well.