Vice President of IMANI Africa, Bright Simons, has reacted to the news of London-based oil exploration company Tullow Oil's $110 million loss after taxes for the fiscal year 2023.

The loss is primarily attributed to an impairment related to the Tweneboa, Enyenra, and Ntomme (TEN) development, where fields are experiencing a decline in productivity.

In response, Mr Simons noted that analysts had already registered their concerns about Tullow's prospects. This included the Field's productivity as well as the inability of the company to check its cost operations.

"Analysts on the ground in Ghana have been seriously worried about Tullow's prospects for a while now. Besides field productivity issues, the incessant focus on "free cashflow" by the current bosses has not really reflected in cost performance," he wrote.

He added, "Imagine the surprise, then, when Bloomberg reported this afternoon that folks are "surprised" about Tullow's 2023 loss position following write-off of TEN reserves. Every analyst in Ghana knows both oil & gas at TEN are running out. Even worse, Jubilee is struggling too."

This financial setback contrasts with the $49 million profit recorded in 2022. Despite the decline in profits, Tullow Oil's revenue for 2023 remained substantial at $1.6 billion compared to $1.7 billion in the previous year.

Rahul Dhir, the Chief Executive Officer of Tullow Oil, described 2023 as a year marked by significant achievements. These achievements include the initiation of the Jubilee South East project, contributing to material production growth from the core operated field.

Dhir also highlighted the establishment of a new revenue stream through the sale of associated gas in Ghana and the growth of reserves in Gabon through license extensions.

He emphasized the company's ability to generate free cash flow ahead of expectations despite challenges such as lower oil prices. Additionally, Tullow Oil secured a $400 million debt facility agreement with Glencore, demonstrating its access to long-term capital.

Looking ahead, Dhir reaffirmed the company's commitment to operational excellence, capital efficiency, and strategic investments to drive growth. He expressed confidence in Tullow's ability to create substantial value for investors, host nations, and stakeholders.

Tullow Oil highlighted significant developments in Ghana, particularly the Jubilee South East project's production milestone in July 2023. This event marked a notable increase in field production, with average daily rates surging by 30% in the second half of the year compared to the first half.

Gross oil production from the Jubilee field averaged 83.4 thousand barrels of oil per day (32.5 thousand barrels of oil per day net) in 2023.

Looking forward, Tullow Oil anticipates the commencement of five new Jubilee wells in 2024, comprising three producers and two water injectors, further enhancing production capabilities.