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How Did Tullow PLC Get Where They Are Today

Tullow Oil Plc is one of the world’s biggest multinational oil and gas exploration company. It was founded by Aidan…

By Londrino Staff , in Business , at June 11, 2020 Tags: ,

Tullow Oil Plc is one of the world’s biggest multinational oil and gas exploration company. It was founded by Aidan Heavey in 1985. And although it was founded in Ireland, its headquarters was moved in the United Kingdom, London soon after the company was created. The company has more than 67 producing fields and interests in more than 150 licenses across 25 nations including but not limited to Kenya, French Guiana, Ghana, amongst many other. 

In Africa but more especially in Ghana, the company discovered the offshore Jubilee Oil field in 2007 and in December 2010, started full production. It remains one of Tullow’s biggest discovery till this day. 

When asked, founder, Aidan Heavey said he began the company because he heard that no one was working on some of the oil fields in Africa, so he got the bright idea to set up a company that would work on those abandoned oil fields. He also mentioned that at the time, he had no idea what he was doing and that was quite challenging for him but nevertheless, he pushed on and to everyone’s surprise, he became a success story. 

Soon after he signed a license agreement in Senegal in the year 1986, production began one year later and it was in that same year that Aidan listed Tullow’s shares in the Irish stock exchange and on the London stock exchange. 

Twelve years after that time, Tullow bought its very own gas fields and exploration acreage, which allowed it to move its operations to the United Kingdom. A year after, Tullow got its first onshore UK license and proceeded to buy exploration acreage in Spain, Italy and South Yemen. 

It wasn’t until 1990 that Tullow signed its first license agreement in Pakistan. This led to the foundations for the Group’s South Asia Portfolio of assets. Over time, more licenses were obtained from different countries. 

But 2000 was the year Tullow really experienced a fast growth rate as after acquiring gas fields and other related infrastructure in the UK Southern North Sea, they became the lead character in the Thames/Hewett areas and CMS. Then came the big increase in profits and sales and Tullow finally turned its financial management on South Asia, West African, etc.

Tullow shocked the world in 2004 when it was revealed that the company had grown twice its size. Some attributed that feat to its acquisition of Energy Africa. Afterwards, Tullow started a “tax planning” practice which to their sadness was disallowed by Heritage’s counsel during the Heritage/Tullow court case in 2013.

In 2011, Tullow acquired 25 Dutch, North Sea Gas fields in 2011 and in that same year, they discovered a new oil reserve in Kenya. In February 2012, the company also finalized the purchase of a farm down of two-thirds of its interest to Total and CNOOC for $2.9bn. 

Tullow, however, did experience some production delays in 2013 at the Jubilee field but in weeks, they got back on their feet and production resumed and stronger too. At that time, they managed to produce around 110, 000 barrels of oil daily and with an anticipated year-end exit rate of close to 120, 000 barrels of oil daily. 

But earlier that year, Tullow had also endured major criticism because of a decrease in its share price. It was later announced that this was as a result of the company to reach its production targets. This contributed largely to why the broker Investec rated the oil firm as a sell. The administration of the firm, as well as the company. Simultaneously, the oil fields at the coast of Ghana were also giving Tullow major problems as the cost of the fields which amounted to more than five billion US dollars was too much for a company of Tullow’s size. So, the company had no other choice but to have its shares reduced in projects to help curtail the cost of burden developments.  

Afterwards, Tullow along with its partners (CNOCC and TOTAL) continued working with governments, more specifically at this time, with the government of Uganda on the expansion and advancement of Lake Albert.

In 2014, CEO Aidan Heavey came under backlash when it was discovered that his pay had risen significantly in 2013, at the time where the company’s share had decreased by as much as 30 percent.

In March 17, 2017, Tullow openly declared a $750 million rights issue as a result of a very low oil price that the oil producer struggled with. However, the company’s oil exploration and appraisal drilling success rate has been considered an amazing feat next to none worldwide.

At the moment, the company maintains a major listing on the London Stock Exchange and Irish Stock Exchange.