Capital Markets Day

Tullow Oil plc | 2020 Capital Markets Day 25 November 2020

2020 Capital Markets Day

Agenda

Presenters

1

A NEW APPROACH

Delivering enhanced value and cashflow

3

GHANA

Maximise value from large resource

5

KENYA AND EMERGING BASINS

Material value to unlock

7

FINANCIALS

Underpinned by a robust financial framework

2

OPERATIONAL TURNAROUND

Improving production efficiency and reliability

4

NON-OPERATED

Investing in stable, sustainable production

6

ENVIRONMENT, SOCIAL, GOVERNANCE

Retaining a strong focus

8

CONCLUSIONS

Rahul Dhir

Les Wood

Chief Executive Officer

Chief Financial Officer

Wissam Al-Monthiry

Julia Ross

Managing Director, Ghana

Director, People and Sustainability

Tullow Oil plc | 2020 Capital Markets Day

Slide 2

A year of significant change: Putting Tullow back on track

Leadership

Operational turnaround

Cost focus

Capital discipline

Capital structure

ESG focus

Maximising value

New CEO, leadership and lean organisation

Focus on asset integrity, process safety, maintenance and reliability

Ghana operating costs and corporate G&A significantly reduced

Flexible opportunities identified to allocate future investment capital

Successful RBL redeterminations and Uganda proceeds received

Continue to create lasting social and economic benefits

New plans to deliver material value and cash flow

Tullow Oil plc | 2020 Capital Markets Day

Slide 3

Highly experienced, diverse and committed leadership team

Les

Wissam

Wood

Al-Monthiry

Chief Financial Officer

Ghana

Commercial & Planning

Health & Safety

Finance

Integrated technical

IR & Corporate Affairs

functions

M&A

Stakeholder & JV

Oil Marketing

Management

Tax

Treasury

Joined Tullow in 2014 as

Joined Tullow in 2020;

VP Commercial;

formerly at BP and

formerly at BP

Goldman Sachs

Senior Leadership Team (SLT)

Rahul Dhir

Chief Executive Officer

Joined Tullow 2020; formerly Delonex, Cairn India, Morgan Stanley

Mike

Julia

Jean-Medard

Walsh

Ross

Madama

General Counsel

People & Sustainability

Non-op

Information Systems

Shared Prosperity

Gabon, CdI, EG

Insurance

Human Resources

Non-op technical

Internal Audit & Risk

Internal Comms.

Stakeholder & JV

Legal

Management

Joined Tullow in 2020;

Joined Tullow in 2001;

Joined Tullow in 2012;

formerly at Delonex,

formerly Corporate

formerly at

Cairn India

Finance at Tullow

Schlumberger

Amalia

Madhan

Olivera-Riley

Srinivasan

Exploration

Kenya

Africa

Development concept

NFE and ILX1

Licence renewal

South America

Stakeholder & JV

Subsurface

Management

Joined Tullow in 2019;

Joined Tullow in 2014;

formerly at Essar Energy

formerly at Repsol and

and BP

ExxonMobil

1 Near-field exploration and infrastructure-led exploration

Well Engineering

Subsurface &

Geoscience

Technical

Advisors

Baringa

Intera Petroleum

& Auditors

Partners in Performance

Consultants

Striatum

TRACS

Tullow Oil plc | 2020 Capital Markets Day

Slide 4

New approach delivers material value and cash flow

Production base with material resource play

Significant positions in discovered and emerging basins

Operational turnaround

Cost

focus

Capital

discipline

Geoscience

2021-30

>95%

uptime target

<$11

opex/bbl target

c.$2.7bn

2021-30 capex

>40%

oil recovery

>600

mmbbls 2P/2C

from producing

assets

c.$7bn

operating CF1

c.$4bn

cash flow available for debt service and shareholder returns2

Upside

Undeveloped resource and gas commercialisation

171

Net 2C Kenya

value

mmbbls

Net risked

Unlocking

c.900

prospective

resources in

mmboe

emerging

basins

>90% capital allocation

  1. Cash flow from operating activities, before debt service, capital investment and decommissioning expenditure
  2. Cash flow from operating activities less capital investment and decommissioning expenditure

1&2 Based on $45/bbl in 2021, $55/bbl flat nominal in 2022+

Managing capital exposure

Tullow Oil plc | 2020 Capital Markets Day

Slide 5

Well defined and profitable investment opportunities

Attractive portfolio of African production investments

200%

150%

$65/bbl

100%

Combined IRR1

IRR (%)

$45/bbl

50%

>80%

c.$11/bbl

IRR on

Average

investment

development cost

portfolio1

Value accretive producing assets

  • Significant improvement in reliability and profitability
  • More than 60 well-defined and de-risked investment options identified
  • Short payback projects and a self-funded cashflow profile
  • Prioritising investments in producing assets (>90% of Group capex)
  • Average IRR of >130% at $65/bbl and >70% at $45/bbl
  • Significant value creation for host governments

0%

$0

$500

$1,000

$1,500

$2,000

$2,500

Cumulative Capex ($m)

Flexibility to manage capital investment

1 Based on $45/bbl in 2021, $55/bbl flat nominal in 2022+

Tullow Oil plc | 2020 Capital Markets Day

Slide 6

Material producing asset resource

Well-defined supply with replenishment potential3

700

600

2P reserves

243

Improved

recovery,

500

c.260

NFE and ILX4

(mmboe)

400

2C resources

Volume

402

300

from producing

assets only

200

100%

c.380

YTD 2020

reserves

100

replacement2

0

2P-2C reserves &

2021-30 production

Residual recoverable

resources1

resource1

  1. 2C resourcesfromproducingassetsonly,excludesKenyaandGuyana
  2. Asat30September
  3. AllnumbersTullowworkinginterest
  4. Near-fieldexplorationandinfrastructure-ledexploration

Visible production with acceleration potential3

80

75

60

Non-op

(kbopd)

Production

40

TEN

3%

$2.7bn

2021-30

capex

20

97%

0

Jubilee

20f

21

22

23

24

25

26

27

28

29

30

Tullow Oil plc | 2020 Capital Markets Day

Slide 7

Roadmap to creating a resilient, self-funded business

Operational

Capital

Capital

Unlocking

turnaround

discipline

structure

value

Continued operating

Refocused and defined

Solid foundations to

Revised Kenya

performance improvement

investment portfolio

address debt maturities

development concept

Sustain low-cost

Self-funded

Progress refinancing

New resources in producing

production

capex

options

assets and prospect maturation

Reservoir management

Flexible investment and

Drive gearing to 1x-2x with

Value accretive

to offset decline

acceleration opportunities

appropriate headroom

asset sales

Tullow Oil plc | 2020 Capital Markets Day

Slide 8

Operational turnaround:

Improving production efficiency and reliability

Wissam Al-Monthiry

Tullow Oil plc | 2020 Capital Markets Day

Operational turnaround to deliver value and cash flow

Health and safety - Remains our highest priority

JV partners

Commercial and relationship focus - Government and Joint Venture (JV) collaboration

Organisational capability - Team strengthened and integrated

Facilities reliability - Enhanced maintenance and asset integrity

Drilling efficiency - Reduce well complexity and rig downtime

Competitive operating costs - Continuous improvement

Tullow Oil plc | 2020 Capital Markets Day

Slide 10

Focus on enhancing oil production

Production efficiency

  • Closely integrated Tullow oversight
  • Improvement to processing systems reliability
    • Defect elimination process
    • Well optimisation
    • Maintenance and integrity management
  • Sustaining performance by embedding efficiencies

Improved uptime performance in Ghana

Uptime (%)

98%

> 95%

91%

92%

2018

2019

2020f

2021+

Water injection efficiency

  • Water injection remains a key area of focus on Jubilee
  • Greater water injection volumes to sustain reservoir pressure and improve sweep efficiency
  • Three water injection pumps operational on Jubilee with injection capacity building up to >300kbw/d
  • Aligning full system infrastructure to sustain capability

Addressing water injection reliability and capacity

Jubilee water rate (kbw/d)

130

180

270

300

2017-19

2020-21f

2022

YE23+

average

average

Tullow Oil plc | 2020 Capital Markets Day

Slide 11

Improving gas offtake performance

Opportunity

  • Higher gas export improves reservoir management, enhances oil production and minimises emissions
  • Delivers material value for Ghana

2020 Progress

  • Record levels of gas export built up over 2020
  • Improvements in facilities reliability through targeted interventions
  • Onshore gas demand stabilising
  • Alignment with Government on projected gas offtake

Forward plan

Maintain gas performance with sustained facilities uptime

Reliable gas offtake supports oil production

Gas rate (mmscf/d )

>200 mmscf/d including gas commercialisation

135

exit rate

130+

130+

106

73

65

44

1H 2019

2H 2019

1H 2020

2H 2020f

2021

2022+

Growing gas processing capacity

Gas rate (mmscf/d)

250

Debottleneck gas handling capacity on Jubilee FPSO

Target to increase gas offtake beyond 130mmscf/d

140

190

Integrated delivery: subsurface, operations, commercial and Government

2019

2020-23f

YE24+

Tullow Oil plc | 2020 Capital Markets Day

Slide 12

Driving down costs for a low cost operation

Jubilee1

450

Asset operating costs (gross)

50 450

400

Opex

45 400

$406m

Opex/bbl

350

40 350

35

300

300

$304m

30

250

250

25

c.$240m

200

200

20

150

15

150

100

$12.7

10 100

$9.9

c.$9.0

50

5

50

-

- -

2019

2020f

2021

Axis Title

1 2019 and 2020 include opex associated with turret remediation

TEN

Asset operating costs (gross)

Opex

Opex/bbl

$177m

$148m c.$150m

c.$11.5

$7.9$8.3

2019 2020f 2021

Axis Title

50

45

40

35

30

25

20

15

10

5

-

Cost savings being delivered

Reduction of equipment

vulnerabilities

Continuous opportunity

identification with consultant

support

Maximise leverage through the

supply chain

Cost-driven performance

management

Tullow Oil plc | 2020 Capital Markets Day

Slide 13

Delivering improved drilling performance

Driving future drilling costs down by c.20%

Top quartile drilling performance

Drilling cost per well ($m gross)

75

60

Continuous

improvement

<$60m

2018-20 well costs1 Reduce rig downtime

Reduce well

Supply chain scaling

2021+ target

complexity

Simplified well design and

reduced completion complexity

Improved rig reliability through enhanced maintenance assurance

Integrated planning across

subsurface, drilling and projects

teams

Advanced alignment with JV

Partners on well targets

1

Normalised for 2021 rig rates

Slide 14

Ghana:

Maximise value from large resource

Wissam Al-Monthiry

Tullow Oil plc | 2020 Capital Markets Day

Building blocks to unlock value and cash flow

Operational turnaround

Safely maximise production efficiency

Cost focus

Delivering a sustainable low- cost business and organisation

Capital discipline

Allocate capital to high return, short cycle development opportunities

Geoscience

Maximise recovery and deliver significant upside opportunities within licence

Options to increase field

recovery, develop near-field and ILX discoveries and commercialise the significant gas resources

Plans in place to develop discovered resource base over the next 10 years

Low-cost opportunities identified to pursue from 2021 to build production and cash flow

High quality portfolio of oil producing fields and infrastructure provides solid platform

Tullow Oil plc | 2020 Capital Markets Day

Slide 16

Substantial Ghanaian resource base across two areas

Only 393 mmbbls produced

Wells: 25 producers,

c.14% recovery

18 water inj. and four gas inj.

Two FPSOs and subsea

More than >550mmbbls gross

infrastructure in place

yet to be produced

Potential to increase RF2 to

Near-field opportunities

unlock additional reserves

present significant upside

Jubilee gross volumes (mmbbls)

TEN gross volumes (mmbbls)

c. 1,800

RF 41%

c. 1,000

RF 29%

220

RF 30%

RF 17%

210

RF 9%

RF 17%

130

308

85

85

STOIIP1

Production to No further activity Defined projects

Additional

STOIIP

Production to No further activity Defined projects

Additional

Sept-20

recovery

Sept-20

Recovery

1

2

Stock Tank Oil Initially In Place

Tullow Oil plc | 2020 Capital Markets Day

Slide 17

Recovery Factor

Well-defined, high return drilling opportunities

Comprehensive review completed

Highly efficient investments with short

paybacks and high returns

Economies of scale identified

Minimal additional infrastructure required

Revised investment phasing to maximise recovery

Unit development costs of c.$12/bbl

Optimising capacity of both FPSOs

Development work supported by expert

4D seismic analysis

Tullow Oil plc | 2020 Capital Markets Day

Slide 18

Defined set of opportunities to sustain production

Rich drilling options1

Defined projects

26

wells planned over 2021-30

1-2

year payback

23

wells planned over 2021-30

1-2

year payback

10-15

kbopd

initial production

rate per well

>90%

IRR

10-15

kbopd

initial production

rate per well

>70%

IRR

Jubilee

South East

Jubilee

North East

Ntomme Far West

Enyenra

North

Enyenra

South

2022

140

Producer/ injector pair

2023

mmbbls oil

Two producers online

2024+

Follow-on wells

in SE and NE

90

2022-24+

Projects progressing

mmbbls oil

towards FID

1 Based on $45/bbl in 2021, $55/bbl flat nominal in 2022+ All numbers on a gross basis

Tullow Oil plc | 2020 Capital Markets Day

Slide 19

Additional opportunities to deliver upside

Maximising recovery1

Additional oil recovery in Jubilee

  • Targeting more than 40% ultimate recovery in Jubilee
  • Around 100mmbbls of additional recovery potential

Greater Ntomme Tweneboa (GNT) Area

  • More than 350mmbbls of undeveloped STOIIP
  • Utilising existing subsea infrastructure

Tweneboa West

  • More than 30mmbbls of undeveloped STOIIP
  • Fast development, tie back to existing infrastructure

1 All numbers on a gross basis

Significant opportunity to commercialise gas resource1

c.1TCF

of recoverable gas resource

Already connected to onshore

infrastructure

Long term supply

potential (10+ years)

Multiple gas

commercialisation options

Dedicated JV taskforce

to progress

Tullow Oil plc | 2020 Capital Markets Day

Slide 20

Near-field and infrastructure-led opportunities

Ghana

  • Several near-field prospective opportunities identified
  • Low risk, commercially attractive, accelerated tie-in targets
  • Estimated volumes >100mmboe STOIIP (gross)
  • Discussions with Government on access commenced

A

B

Enyenra

Tweneboa West

Danta

Seismic anomalies (reds) representing reservoir

2km

Côte d'Ivoire

  • Underexplored block adjacent to TEN field infrastructure
  • Westward extension of proven plays in TEN/Jubilee
  • Current focus: seismic re-processing and prospect maturation

Tullow Oil plc | 2020 Capital Markets Day

Slide 21

Non-op:

Investing in stable, sustainable production

Rahul Dhir

Tullow Oil plc | 2020 Capital Markets Day

Non-op: Stable production from existing resource base

Côte d'Ivoire

Equatorial Guinea

Gabon

Sustainable production

Stable cash flow;

22 - 25 kboepd

Self-funded portfolio

Strong JV

Proven execution

partnerships

capability

Access to

Near field

infrastructure

opportunities

Mature fields with defined opportunities for stable production (kboepd)1

Gabon (c.15kbopd 2020)

Light oil, 23 fields, off/onshore

30

Gabon

Equatorial Guinea

Côte d'Ivoire

25

25

25

22

22

22

20

15

2021-30 average production including

10

defined projects and further opportunities

5

0

2016

2017

2018

2019

2020f

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

  • Working interest range 7.5-57.5%

Equatorial Guinea (c.5kbopd 2020)

  • Light oil, five fields, offshore
  • Working interest 14.25%

Côte d'Ivoire (c.2kboepd 2020)

  • Light oil and gas, two fields, offshore
  • Working interest 21.3%

1 AllnumbersTullowworkinginterest

Tullow Oil plc | 2020 Capital Markets Day

Slide 23

Non-op: Diverse set of low-risk projects

Defined investment options and projects1

Expanding six key assets

>40 wells

Two new

14

1-3

40-150

Gabon

mobile production units

mmbbls oil

year payback

%IRR

Espoir Phase IV infill campaign

Six wells

4

Two

c.80

Côte d'Ivoire

mmbbls oil

year payback

%IRR

Okume Complex infill campaign

Three wells

1

Two

c.70

Equatorial Guinea

mmbbls oil

year payback

%IRR

1 All numbers Tullow working interest

Tullow Oil plc | 2020 Capital Markets Day

Slide 24

Kenya and emerging basins:

Material value to unlock

Rahul Dhir

Tullow Oil plc | 2020 Capital Markets Day

Unlocking value across the portfolio

Kenya

Guyana

37.5% to 60.0%

Material recoverable

Two blocks

3D repro.

resource base

Licences extended

Suriname

50.0% to 100.0%

Development plan being

Three blocks

One well

revisited for low oil prices

2D seismic

Emerging basins

  • Material positions in emerging oil provinces
  • Significant intellectual capital being invested

Suriname well (GVN-1)

Guyana prospect maturation

  • Argentina 3D seismic

Côte d'Ivoire

60.0% to 90.0%

Two blocks

3D seismic repro

Namibia

35.0% to 56.0%

Two blocks

Peru 35.0% to 100.0%

Four blocks 2D repro

Argentina

40.0% to 100.0%

Three blocks 3D Seismic

Kenya

50.0% to 100.0%

Four blocks

2021 drilling

Kenya

1.5

Billion barrels

Gross STOIIP

171

Million barrels

2C working interest resources

Prospective net risked resources in emerging basins

Guyana Suriname

16%

Cote d'Ivoire

6%

44% 900

mmboe 10% Namibia

24%Argentina

Tullow Oil plc | 2020 Capital Markets Day

Slide 26

Kenya development concept under review

Ingredients for a profitable low-cost project

Material high quality onshore resource base

Licences extended

Significant progress made to date

1.5 billion bbls

Shallow, productive reservoirs

Light waxy crude

STOIIP (gross)

Large onshore acreage position

December

Conditional on approval of budgets

Plan to fully review development concept

2021

Ensure project robust to low oil prices

Technical

Upstream and midstream FEED; upstream bids;

pipeline tender

EOPS

Critical data; first crude export;

stakeholder engagement

Commercial

Key agreements drafted;

regional and international interest for pipeline financing

Land and water

80% pipeline gazetted; ESIA work ongoing

Tullow Oil plc | 2020 Capital Markets Day

Slide 27

Kenya project redesign for low oil prices

Phasing

Additional discovered fields;

increased plateau rate and duration

Production

Kenya

Increased rates by

targeting high

An improving

productive wells at

value proposition

crest; EOPS learning

Water

Improved sweep efficiency and increased number of injectors

Well count

More drilling; lower unit cost

Opex

Lower opex via similar field analogues, particularly reduced well opex

Capex

Economies of scale

Licence extensions

will provide time to evaluate options

Feedback

from farm down process is being

incorporated

Economics

to be improved through

development concept and cost

optimisation

Tullow Oil plc | 2020 Capital Markets Day

Slide 28

Guyana/Suriname: Material positions in emerging basins

Generating value through opportunity identification and maturation

Industry hot spot with multi- billion-barrel discoveries

Leveraging core expertise in turbidite plays

Strong relationships with host governments

Suriname - GVN-1 well with

significant follow-up

Guyana - Prospects maturing for drilling campaign

Tullow Oil plc | 2020 Capital Markets Day

Slide 29

Suriname: Goliathberg-VoltzbergNorth-1

Block 47

Tullow 50% (op)

GVN-1 paying interest c.36%

Block 62

Tullow 80% (op)

Planning for 1Q21 spud

Upper Cretaceous turbidite play

Dual targets in excess of

400mmboe (gross)1

Testing extension of working

hydrocarbon system

Potential to de-risk >1bnboe (gross) in

follow-up prospects1

1Pmean recoverable

Tullow Oil plc | 2020 Capital Markets Day

Slide 30

Guyana: Material equity in prospective blocks

TLW 60% (op)

TLW 37.5% (non-op)

Inboard of >8bnboe discoveries in

Large portfolio of prospects - total over

Guyana-Suriname basin

2bnboe net recoverable

Three plays proven on Tullow acreage

High grading drill candidates for Kanuku 2022

and Orinduik 2022+

Tullow Oil plc | 2020 Capital Markets Day

Slide 31

Environment, Social and Governance:

Retaining a strong focus

Julia Ross

Tullow Oil plc | 2020 Capital Markets Day

Focused on reducing GHG emissions

Higher 2020 emissions intensity, from increased flaring in Ghana

Long-term gas offtake

options support

elimination of flaring

Net Zero delivery plan

being developed

Net Zero (Scope 1 and 2) commitment - possible decarbonisation levers

5 Year Plan

Options for decarbonisation roadmap

2020

Gas

emissions

utilisation

baseline

and gas

Carbon

reinjection

addressable

reduction

Ongoing

initiatives

Remaining

emissions

Small process

Carbon

options

Energy

modifications

efficiency

Power

generation

offsets

JV partner collaboration | Alignment with government priorities | Governance and executive incentives

Tullow Oil plc | 2020 Capital Markets Day

Slide 33

Creating lasting social and economic benefits

Social investment in Ghana

>500 3,000

educational

bursaries

scholarships

Strategic local content in Ghana

  • $1.5bn spent with local suppliers since 2015
  • c.30% of supply chain expenditure has been with indigenous companies over last three years

c.25%

$10 millioncommitted over 5 years to Government of Ghana's flagship Free Senior High School initiative, providing access to education for all

Targeted

Upgrading aviation

development: focus on

infrastructure at Takoradi

marine sector led to

Airport Air Force Base

first Ghanaian owned

creating an enhanced

and flagged Offshore

operational base for oil and

Supply Vessel

gas sector and beyond

of Ghana's gas demand for domestic power supplied at zero cost, providing access to electricity to 6.7 million individuals

Shared Prosperity for all stakeholders

Tullow Oil plc | 2020 Capital Markets Day

Slide 34

Strong internal and external transparency and governance

c.$3.4bn

socio-economic contribution 2015-19

Socio-economic contribution ($m)

First oil company to publicly support

contract transparency

Leading disclosure on Modern Slavery in Transparency in the Supply Chain Report

Human Rights Policy embedded in

800

778

Code of Ethical Conduct

708

719

719

700

600

500

462

400

300

200

Strong Anti-Bribery and Corruption

governance

Female Board

representation at 33%

Workforce Advisory Panel meeting

regularly with Board

100

0

2015

2016

2017

2018

2019

Taxes to governments

Local Suppliers

Social Investment

Tullow Oil plc | 2020 Capital Markets Day

Slide 35

Financials:

Underpinned by a robust financial framework

Les Wood

Tullow Oil plc | 2020 Capital Markets Day

Oil market context: a volatile backdrop

80

60

Tullow plans based on $45/bbl in 2021, $55/bbl flat nominal in 2022+

($/bbl)

40

Oil price

20

External range (sources below)

Dated Brent

FWD curve (24-Nov)

Hedging floor protected1

0

2020

2021

2022

2023

2024

2025

1 2020: 60% hedged at $57/bbl, 2021: 54% hedged at $49/bbl, 2022: 3% hedged at $51/bbl

1H20

Dramatic crash and rebound

following OPEC+ deal

Hedging

remains a key

risk management tool

$55/bbl

in line with low end of external range

Sources: Bloomberg, Tullow data and External range based on: Arden, Auctus, BAML, Barclays, Berenberg, BMO, BNP, Canaccord, Cenkos, Citi, Credit Suisse, Deutsche Bank, Goldman Sachs, Hannam, Investec, Jefferies, JPM, Morgan Stanley, Mackie Research, Mirabaud, Panmure Gordon, Pareto, Peel Hunt, RBC, Shore Capital, Societe Generale, Stifel, UBS and WH Ireland

Tullow Oil plc | 2020 Capital Markets Day

Slide 37

New approach underpinned by a robust financial framework

Strengthened

Disciplined

Focused on

balance sheet…

capital allocation…

value creation…

  • Drive Net Debt to $1.0bn - 1.5bn
  • Gearing at lower end of range of 1-2x
  • Liquidity headroom of no less than $500m

>90% of investment

Prioritise investments with

focused on producing

high returns and short

assets

payback

Flexible $150-450m capital

Maximise value from

expenditure range

producing asset portfolio

Managing capital exposure

Unlock value in discovered

to Kenya and emerging

resource and emerging

basins

basins

… resilient to oil price

… with flexibility to respond

… with a clear set

volatility

to oil price environment

of priorities

Tullow Oil plc | 2020 Capital Markets Day

Slide 38

Delivering a sustainable lower cost business

A lean organisation

Pursuing lower steady state operating costs

Annual cash cost savings of >$125m

G&A ($m)

$400 Group operating costs ($m & $/boe)

Net operating costs 25

Gross G&A

369

Net G&A

Unit opex

$350

351

20

$300

320

c.300

280 1

c.280

$250

15

$200

11.7

c.12

11.1

<11

c.160

c.160

$150

10

112

75

$100

50

50

5

$50

$-

0

2019

2020f

2021

2021-30 average

2019

2020f

2021

2021-30 average

Headcount reduced by c.60%

Outsourcing of certain routine activities

Continue to pursue further efficiencies

Operating cost reduction to <$11/boe

Bottom-up review with external consultants

Requirement for shuttle tankers removed

Cost-driven performance management

Tullow Oil plc | 2020 Capital Markets Day

Slide 39

1 Excluding restructuring costs

Disciplined capital allocation

Increasing allocation towards producing assets

Maintaining a flexible capex range ($m)

500

400

80%>90%

50%60%

Ghana Non-op Kenya Exploration

325

300

2019

2020f

2021

2022+

Producing assets

Other investments

200

Ability to reduce capital to respond to volatile oil price environment

290

85

20

65

60

5

80

Flexible range

150-450

100

2021 investing 80% of capital expenditure in producing assets

180

120

2021-30 $2.7bn of total investment

0

2020f

2021

2021-30

Note: Majority of exploration expenditure in 2020-21 relates to existing commitments

Tullow Oil plc | 2020 Capital Markets Day

Slide 40

Effectively managing decommissioning liabilities

  • Innovative contracting and collaboration strategies yield costs savings
  • Increased scope and COVID-19 effect on operations offset by cost savings
  • Tullow-operateddecommissioning obligations in the UK will be completed in 2020
  • Expenditure offset by c.$140 million UK tax relief

UK and Mauritania decommissioning exposure ($m)

530300

Mauritania

190

UK

40

Liabilities

2016-20

2021-221

2023-251

Annual

decommissioning costs set to reduce materially from 2022

1

UK non-operated decommissioning liabilities post-2020

Tullow Oil plc | 2020 Capital Markets Day

Slide 41

Material proceeds delivered from Uganda sale

Sale of Ugandan assets

$500m

Paid at completion: 10 November

$75m

Payment on Uganda FID

Contingent payments

Oil price related

Efficient execution

  • Good collaboration with the Government and Total
  • Closed 7 months from signing
  • Tax agreement up front
  • Operatorship agreed promptly
  • No JV Partner pre-emption
  • Employee transfers to Total

Reduced net

debt to $2.4bn

All future Uganda

capital exposure eliminated

No impact on RBL

Considering further asset sales provided they are value accretive and

strengthen the balance sheet

debt capacity

Tullow Oil plc | 2020 Capital Markets Day

Slide 42

New approach supports deleveraging and value creation

$1bn1

$2.4bn1

$4bn2

Liquidity

Net

Cash

Sources and uses of cash ($bn)

2021-30

headroom

debt

flow

A clear path to deliver net debt in range of $1-1.5bn and gearing at lower end of 1-2x range

Solid foundations in place to address debt maturities; advisors appointed to progress refinancing options

$10

$9

$8

$7

$6

$5

$4

$3

$2

$1

$0

$65/bbl

$55/bbl

Operating cash flow

Debt service and

shareholder

returns

Deleverage to

reach target

Decom

Capex

SourcesUses

1

2

As of 10 November 2020

10 year cumulative cash flow available for debt service assuming $45/bbl in 2021 and $55/bbl flat nominal 2022-30

Tullow Oil plc | 2020 Capital Markets Day

Slide 43

Conclusion

Rahul Dhir

Tullow Oil plc | 2020 Capital Markets Day

New approach delivers material value and cash flow

Operational$7bn

turnaroundc.

operating CF1

Cost

focusc.$4bn

cash flow available

for debt service and

Capitalshareholder returns2

discipline

Upside

Geoscience

Undeveloped resource and

gas commercialisation

Discovered and emerging basins

Significant value underpinned by a large resource base

Focus on costs to maintain high margins at low prices

Delivering sustainable self-funded production

Material options to generate additional returns

Strong cash flows for debt reduction and equity growth

1

2

1&2

Cash flow from operating activities, before debt service, capital investment and decommissioning expenditure

Cash flow from operating activities less capital investment and decommissioning expenditure

Based on $45/bbl in 2021, $55/bbl flat nominal in 2022+

Tullow Oil plc | 2020 Capital Markets Day

Slide 45

Q&A

To ask a question, please dial into the conference call and enter the "Event Plus Passcode" shown below:

Free phone (UK):

0800 694 1461

Tel:

+44 (0) 203 009 5709

Event Plus Passcode:

27 09 187

Rahul Dhir, Les Wood, Wissam Al-Monthiry and Julia Ross Tullow Oil plc | 2020 Capital Markets Day

Tullow Oil plc

9 Chiswick Park,

566 Chiswick High Road

London

W4 5XT

United Kingdom

Tel: +44 (0)20 3249 9000

Fax: +44 (0)20 3249 8801

Email: ir@tullowoil.com

Web: www.tullowoil.com

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Tullow Oil plc published this content on 08 December 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 December 2020 17:08:02 UTC