Tullow Oil PLC on Wednesday said that its revenue and profit surged during 2022, as oil prices climb on the back of Russia’s invasion of Ukraine.

The Africa and South America-focused oil and gas exploration company said revenue in 2022 increased to $1.78 billion from $1.29 billion a year ago.

During the period there were 55,170 barrels of oil equivalent per day of liftings, down compared to 55,450 boepd in 2022. This mainly consisted of 13 liftings in Jubilee of 29,322 boepd and 5 liftings in TEN of 12,270 boepd, compared to 10 liftings in Jubilee of 25,987 boepd and 5 liftings in TEN of 13,511 boepd in 2021.

‘The increase in Jubilee liftings was mainly driven by increased production,’ Tullow said.

However, oil prices were on the rise during the period. The oil price after hedging was $88.0 per barrel of crude oil and before hedging $104.3/bbl. In 2021, these figures were $63.3/bbl and $70.9/bbl, respectively.

Pretax profit more than doubled to $442 million from US215 million.

Looking ahead, Tullow has set itself working interest oil production guidance of 58,000 to 64,000.

It also noted two disputed tax assessments received from the Ghana Revenue Authority.

In February, Tullow said its subsidiary Tullow Ghana Ltd has filed requests for arbitration with the International Chamber of Commerce in London. the assessments relate to the disallowance of loan interest deductions for financial year 2010 to 2020 and proceeds received by Tullow under its business interruption insurance policy.

At the time, Tullow said it thinks the two disputed taw assessments, which total $387 million plus penalties, breach Tullow Ghana’s rights under its petroleum agreements.

Tullow has previously filed a request for arbitration in respect of a separate assessment for branch profits remittance tax of $320 million in 2021. A hearing in respect of this dispute is scheduled for October 2023.

Shares in Tullow Oil were down 3.0% to 33.22 pence each in London on Wednesday morning. The company also is listed in Ghana.

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