What is Tullow Oil plc and what is its primary industry?

Tullow Oil plc is a multinational company engaged in oil and gas exploration. Its primary industry is the exploration and production of hydrocarbons.

When and where was Tullow Oil founded, and where is its headquarters located?

Tullow Oil was founded in 1985 in Tullow, Ireland. The company's headquarters are currently located in London, United Kingdom.

Who founded Tullow Oil, and what was its initial focus?

Tullow Oil was founded by Aidan Heavey in 1985. Initially, it operated as a gas exploration business in Senegal.

What significant acquisition did Tullow Oil make in the North Sea in 2000?

In 2000, Tullow Oil acquired gas fields and infrastructure in the North Sea from BP for £201 million.

When did Tullow Oil acquire Energy Africa, and for what amount?

Tullow Oil completed the acquisition of Energy Africa in May 2004 for $570 million.

In which African country did Tullow Oil begin drilling in 2006, and what region did it start exploiting?

In 2006, the company began drilling its first well in Uganda and started exploiting the Lake Albert region.

What major offshore discovery did Tullow Oil make in Ghana in 2007?

In 2007, Tullow Oil drilled two deepwater wells offshore Ghana, leading to the discovery of the significant Jubilee Oil Field.

When did the Jubilee field in Ghana begin production, and what other fields were discovered that year?

The Jubilee field in Ghana was brought on stream in November 2010, approximately 40 months after its discovery. In the same year, new major discoveries were made at the Enyenra and Tweneboa fields in Ghana.

What was the criticism leveled against Tullow Oil's tax planning in Uganda in 2010?

In February 2010, Tullow Oil initiated a tax planning exercise that was criticized by Heritage's counsel during a court case in 2013. The criticism suggested it was an attempt to reduce the company's tax liability in Uganda, though Tullow's Head of Tax firmly rejected this.

What other exploration activities did Tullow Oil undertake in 2011 and 2012?

In 2011, Tullow Oil bought into 25 gas fields in the Dutch North Sea. In March 2012, a new oil reserve was discovered in Kenya. However, in 2012, the company also encountered non-commercial reservoirs at its Teak-4A well off Ghana, leading to its abandonment.

What was the financial transaction involving Heritage Oil's Ugandan assets and Tullow Oil's partners?

Tullow Oil completed the purchase of Heritage Oil's licenses in the Lake Albert area in 2010 for $1.45 billion. Subsequently, Tullow farmed down two-thirds of its interests to Total and CNOOC for $2.9 billion in February 2012. However, agreements with the Ugandan government regarding the development of Lake Albert, including a refinery and export pipeline, remained unresolved.

What issues led to production delays and criticism of Tullow Oil in 2012 and 2013?

In 2012, there were production delays at the Jubilee field. In January 2013, the company and its leadership faced criticism due to decreased share price, reportedly caused by failure to meet production targets in a Ghanaian project because of operational hiccups. The TEN fields off Ghana also presented challenges due to projected development costs exceeding $5 billion.

What controversy arose in April 2014 regarding senior director payouts at Tullow Oil?

In April 2014, Tullow Oil faced potential investor backlash over what was perceived as excessive payouts to senior directors. CEO Aidan Heavey's pay increase from £2.6 million to £2.8 million in 2013, despite a 30 percent decrease in the company's share price during the same period, drew particular scrutiny.

Why did Tullow Oil announce a rights issue in March 2017?

Tullow Oil announced a $750 million rights issue in March 2017 as the company was struggling with a very low oil price environment.

Who succeeded Aidan Heavey as chairman, and who was appointed CEO in 2020?

Aidan Heavey retired from the board, and Dorothy Thompson became the new chair. Rahul Dhir was appointed as the new CEO, effective from July 2020.

What significant asset sale did Tullow Oil announce in April 2020?

On April 23, 2020, Tullow Oil announced it had agreed to sell its assets in Uganda to Total for US$575 million in cash, plus post-first oil contingent payments, with an effective date of January 1, 2020.

How was Tullow Oil ranked in the Arctic Environmental Responsibility Index in 2021?

In 2021, Tullow Oil was ranked number 49 in the Arctic Environmental Responsibility Index (AERI), which assesses 120 companies involved in resource extraction north of the Arctic Circle.

What merger did Tullow Oil complete in June 2022?

On June 1, 2022, Tullow Oil acquired Capricorn Energy in a share-only merger. Following the deal, Tullow owned 53 percent of Capricorn, which had assets in Mauritania and Egypt.

What was the outcome of Tullow Oil's exploration well offshore Norway in the Barents Sea in October 2013?

In late October 2013, Tullow Oil announced it had plugged and abandoned a wildcat well offshore Norway in the Barents Sea. The decision was made due to "poor quality reservoir rock" encountered at the site.

What were the results of Tullow Oil's exploration efforts in French Guiana with Shell Oil in November 2013?

After prolonged exploration for oil and natural gas in French Guiana in partnership with Shell Oil, Tullow failed to find evidence of hydrocarbons in November 2013.

What was the core of the court case between Tullow Oil and Heritage Oil regarding Ugandan assets?

Court proceedings began after Tullow Oil sued Heritage Oil, claiming it was forced to pay Heritage's $313 million tax bill after Tullow acquired Heritage's Ugandan assets. The dispute centered on capital gains tax demanded by the Ugandan government.

How did Tullow Oil's payment of Heritage Oil's tax bill unfold?

In 2010, Tullow paid $121.5 million of Heritage's initial $405 million tax demand to the Ugandan Revenue Authority (URA). Tullow placed the remaining $283.5 million in escrow. In 2011, Tullow made a further payment of $313.5 million, covering the balance of the original demand plus an additional $30 million added by the URA.

What allegation emerged during the Heritage Oil court case regarding potential payments to the Ugandan government?

During the trial, it emerged that senior directors at Tullow had discussed making an undocumented $50 million payment to the Ugandan government, potentially to help facilitate the farm-down deal with Total and CNOOC. There were also suggestions about funding parts of President Yoweri Museveni's re-election campaign.

What did President Museveni state regarding the bribery claims and Tullow Oil's tax payment?

President Museveni denied the bribery claims in an official statement on March 18, 2013. He also stated that Tullow Oil completed the tax payment to successfully transact business within the country, a claim that Tullow denied in court.

What controversy involved British government ministers and donations from companies like Tullow Oil in March 2013?

In March 2013, a report by the World Development Movement alleged that a third of UK government ministers were linked to finance and energy companies driving climate change. William Hague and Michael Gove were specifically mentioned as having connections to Tullow Oil, with Hague reportedly lobbying the Ugandan president to waive Tullow's tax bill, and Tullow's CEO donating to Gove.

What did a 2013 report by Platform London allege about Tullow Oil's tax practices?

In 2013, Platform London released a report alleging that Tullow Oil was avoiding UK tax by minimizing profit routed through its UK books and instead channeling it through international subsidiaries. The report also accused the firm of exploiting legal mechanisms in Uganda to avoid tax.

What tax dispute led Tullow Oil to arbitration with the Ugandan government in December 2012?

In December 2012, reports indicated Tullow Oil was involved in arbitration with the Ugandan government at the International Centre for Settlement of Investment Disputes (ICSID) in the United States. The dispute arose after value-added tax was imposed on goods and services Tullow purchased for its oil exploration activities in Uganda.

What bribery allegations were investigated in Uganda in 2011 involving Tullow Oil and cabinet ministers?

In 2011, the Attorney General of Uganda initiated parliamentary investigations into bribery allegations against Tullow Oil and three cabinet ministers: Prime Minister Amama Mbabazi, Foreign Affairs Minister Sam Kutesa, and Internal Affairs Minister Hilary Onek. An MP, Gerald Karuhanga, submitted documents related to the incident.

How did Tullow Oil respond to the bribery allegations investigated by the Ugandan Parliament?

A Tullow Oil delegation appeared before an Ad Hoc committee of the Ugandan Parliament in April 2012. They submitted documents claiming to prove the allegations were false and based on forged documents. This submission was made available on Tullow's website.

What legal actions were taken in Uganda concerning the bribery allegations and the Parliamentary investigation?

A lawyer, Severino Twinobusingye, sued the Attorney General to block investigations and calls for the accused ministers to resign. In March 2012, judges awarded Twinobusingye two-thirds of his costs and ruled that the accused did not have to step down. Later, the Constitutional Court dismissed the Parliamentary Commission's appeal to the Supreme Court regarding the probe.

What opposition did Tullow Oil face from pastoralists in Kenya regarding exploration activities?

In July 2013, pastoralists in Kenya's Turkana County rejected Tullow's proposal to move to a new exploration site. They complained that ongoing oil exploration interfered with pasture land and would decimate future grazing areas for their animals.

What actions did local communities in Turkana County take in October 2013, and what was the result?

In late October 2013, local communities in Turkana County staged demonstrations demanding jobs and benefits, leading Tullow to suspend drilling. This resulted in looting and vandalism at facilities and oil blocks. Drilling only resumed after peace talks with local leaders in mid-November.

What accusation of illegal waste dumping was made against Tullow Oil in Uganda in July 2013?

In July 2013, Tullow Oil was accused of dumping two trucks of human waste in Kakindo village, Western Uganda, posing health risks. The company blamed its subcontractor, Saracen Uganda Limited, who in turn blamed another contractor. Tullow stated the responsibility lay with its contractors for cutting corners.

Were there previous accusations of illegal waste dumping against Tullow Oil?

Yes, the incident in July 2013 was not the first accusation. Reports from 2012 claimed the firm had dumped toxic drilling waste in a game park and areas occupied by people.

What is the current revenue, operating income, and net income for Tullow Oil as of 2023?

As of 2023, Tullow Oil reported a revenue of $1,634.1 million, an operating income of $295.9 million, and a net income of $(109.6) million. The figures for revenue and operating income show a decrease, as indicated by the decrease symbols.

Who are the current key people mentioned for Tullow Oil?

As of July 2020, Rahul Dhir is the CEO, and Dorothy Thompson serves as the Chairman.

What products does Tullow Oil offer?

Tullow Oil's products are oil and natural gas.

What is the official website for Tullow Oil?

The official website for Tullow Oil is www.tullowoil.com.

What was the purpose of the 'tax planning' exercise in Uganda that drew criticism?

The 'tax planning' exercise initiated by Tullow Oil in Uganda was criticized as an attempt to reduce the amount of tax the firm was liable to pay in the country. Richard Inch, Head of Tax at Tullow, rejected these criticisms.

What were the 'operational hiccups' that reportedly affected Tullow Oil's production targets in Ghana?

The source text mentions 'operational hiccups' that affected Tullow Oil's production targets at a project in Ghana, contributing to a decrease in its share price and prompting a 'sell' rating from Investec. However, the specific nature of these hiccups is not detailed.

What is the significance of the TEN fields discovery off Ghana?

The TEN fields, discovered by Tullow Oil off the coast of Ghana, represented a significant find. However, the projected development cost for these fields was estimated to exceed $5 billion, which was considered substantial for a company of Tullow's size.

What was the outcome of the arbitration case between Tullow Oil and Heritage Oil on June 14, 2013?

On June 14, 2013, it was announced that Tullow Oil had won the arbitration case against Heritage Oil.

What allegations were made regarding political lobbying by Tullow Oil and its CEO in March 2013?

In March 2013, it was alleged that William Hague, then a British government minister, telephoned the president of Uganda to lobby for Tullow Oil's £175 million tax bill to be waived. Additionally, Tullow's CEO, Aidan Heavey, was reported to have donated £10,000 to Michael Gove, then education secretary, before the 2010 general election.

What did Graham Martin, Tullow's company secretary, state in court regarding a suggestion about President Museveni?

Graham Martin, Tullow's company secretary, responded firmly in court that a suggestion made in an email by Angus McCoss about paying for an oil license to 'meet the short term needs and demands' of President Museveni was an 'outrageous suggestion'.

What was the context of the legal proceedings initiated by Severino Twinobusingye in Uganda?

Severino Twinobusingye sued the Attorney General in Uganda to block investigations into bribery allegations related to oil deals and to prevent accused ministers from resigning. He also sought costs for his legal actions.

What was the financial outcome for Severino Twinobusingye in the Ugandan court case?

In February 2013, the court ordered the Ugandan government to pay 12.9 billion shillings in costs to Severino Twinobusingye, a sum described as unprecedented in the country's history.

What actions did local communities in Turkana County take in October 2013 that led to a suspension of drilling?

In October 2013, local communities in Turkana County staged demonstrations demanding jobs and benefits. They also gained entry to facilities and two oil blocks, resulting in looting and vandalism, which prompted Tullow to suspend drilling operations.

What was the nature of the dispute between Tullow Oil and the Ugandan government regarding value-added tax?

The dispute arose after value-added tax was imposed on goods and services that Tullow purchased for its oil exploration work in Uganda. This led to arbitration proceedings at the International Centre for Settlement of Investment Disputes (ICSID).

What did the Global Financial Integrity (GFI) report reveal about illicit financial flows from Uganda?

A report by Global Financial Integrity (GFI) revealed that illicit financial flows from Uganda between 2001 and 2012 amounted to $680 million. Tullow Oil, in its challenge against tax demands, argued that such funds should be invested in public services like healthcare, education, and infrastructure.

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Company Overview

Corporate Identity

Tullow Oil plc is a multinational entity engaged in oil and gas exploration. Established in 1985 in Tullow, Ireland, its operational headquarters are situated in London, United Kingdom. The company operates as a public limited company, reflecting its structure and governance within the global market.

Financial Performance (2023)

In the fiscal year 2023, Tullow Oil reported significant financial figures:

Revenue: $1,634.1 million
Operating Income: $295.9 million
Net Income: $(109.6) million

These figures indicate a complex financial period, with a net loss reported for the year.

Market Presence & Operations

Tullow Oil is publicly traded on the London Stock Exchange under the ticker TLW. Its primary industry focus is hydrocarbon exploration, yielding products such as crude oil and natural gas. The company's strategic direction and operations are overseen by key figures including CEO Rahul Dhir and Chairman Dorothy Thompson.

Historical Trajectory

Foundation and Early Growth

Founded by Aidan Heavey in 1985 in Tullow, Ireland, Tullow Oil initially focused on gas exploration in Senegal. The company achieved significant milestones by listing on the London and Irish Stock Exchanges in 1986 and later joining the FTSE 100 index in September 2007. Strategic acquisitions, such as BP's North Sea gas fields in 2000 and the Energy Africa acquisition in 2004, expanded its operational footprint and asset base.

Key Exploration Discoveries

Tullow Oil made substantial deepwater discoveries offshore Ghana, notably the massive Jubilee Oil Field in 2007, which commenced production in 2010. The company also initiated exploration in Uganda's Lake Albert region in 2006 and discovered new oil reserves in Kenya in 2012. These ventures positioned Tullow as a significant player in East and West African energy landscapes.

2000: Acquired £201 million worth of North Sea gas fields and infrastructure from BP.
2004: Completed the Energy Africa acquisition for $570 million.
2006: Began drilling in Uganda, exploiting the Lake Albert region.
2007: Discovered the Jubilee Oil Field offshore Ghana.
2010: Acquired Heritage Oil's licenses in Uganda for $1.45 billion; Jubilee field brought online.
2011: Acquired stakes in 25 Dutch North Sea Gas fields.
2012: Discovered oil reserves in Kenya; encountered non-commercial reservoirs off Ghana.
2017: Announced a $750 million rights issue amidst low oil prices.
2019-2020: Leadership changes, with Paul McDade resigning and Rahul Dhir appointed CEO.
2020: Agreed to sell Ugandan assets to Total for $575 million.
2022: Acquired Capricorn Energy in an all-share merger.

Challenges and Criticisms

Tullow Oil has faced operational challenges, including production delays at the Jubilee field and high development costs for the TEN fields in Ghana. The company also encountered criticism regarding executive pay relative to share price performance and faced scrutiny over tax planning practices in Uganda. These factors led to investor concerns and broker downgrades at various points.

Key Projects & Ventures

Barents Sea Exploration

In late October 2013, Tullow Oil announced the plugging and abandonment of a wildcat well in the Barents Sea, offshore Norway. The decision was attributed to encountering "poor quality reservoir rock," marking a setback in its Arctic exploration efforts.

French Guiana Venture

Following prolonged exploration activities in partnership with Shell Oil in French Guiana, Tullow Oil reported in November 2013 that no evidence of hydrocarbons was found. This outcome represented a failure to discover commercially viable reserves in the region.

Guinea Concessions & Investigations

In March 2014, Tullow Oil was compelled to invoke a force majeure clause on its offshore Guinea oil production project. This action was necessitated by a corruption investigation initiated by the US Department of Justice and the Securities and Exchange Commission into its partner, Hyperdynamics Corporation. Tullow had taken over the concessions only a year prior, with drilling plans halted pending resolution of these issues.

Controversies and Disputes

Heritage Oil Tax Case

Tullow Oil faced legal proceedings in London's High Court initiated by Heritage Oil. Tullow claimed it was unfairly burdened with Heritage's $313 million tax bill after acquiring Heritage's Ugandan assets. The dispute involved payments made to the Ugandan Revenue Authority, escrow accounts, and allegations of collusion, with court proceedings revealing discussions about undocumented payments and potential political influence.

The case centered on Tullow's acquisition of Heritage Oil's Ugandan oil interests in 2010. Tullow paid $1.45 billion for Heritage's share, but subsequently paid significant sums towards Heritage's tax liabilities, totaling over $300 million, which it sought to recover. Court testimonies included allegations of Tullow executives discussing undocumented payments to the Ugandan government and potential links to political campaigns. Despite these controversies, Tullow Oil ultimately won the arbitration in June 2013.

Political Lobbying & Tax Avoidance

Reports in March 2013 implicated British government ministers in receiving business-related donations from energy companies, including Tullow Oil. Allegations suggested lobbying efforts for Tullow's tax liabilities in Uganda. Furthermore, a report by Platform London accused Tullow of tax avoidance through an international network of subsidiaries and exploiting legal mechanisms in Uganda.

Tax Disputes and Bribery Allegations

Tullow Oil was involved in arbitration with the Ugandan government at the International Centre for Settlement of Investment Disputes (ICSID) concerning value-added tax imposed on exploration activities. Separately, in 2011, parliamentary investigations were initiated in Uganda into bribery allegations against Tullow Oil and several cabinet ministers. While Tullow submitted documents to Parliament refuting these claims, the legal and political ramifications continued.

Kenyan Opposition & Waste Dumping

In Kenya, Tullow Oil faced opposition from pastoralists in Turkana County in 2013, who protested the interference of exploration activities with pasture land and demanded jobs. Demonstrations led to drilling suspensions and vandalism. Additionally, in Uganda, Tullow was accused of illegal waste dumping in 2013, with the company attributing the incident to subcontractors, though it faced criticism for its contractors' alleged corner-cutting practices.

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References

" Ghana Discovers More Oil!", Ghana web, 25 February 2008.

A full list of references for this article are available at the Tullow Oil Wikipedia page

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AI-Generated Content Notice

This document has been generated by an Artificial Intelligence system. The content is derived from publicly available data, primarily the Wikipedia article on Tullow Oil, and is presented for informational and educational purposes. While efforts have been made to ensure accuracy and comprehensiveness based on the source material, it may not reflect the most current information or all nuances of the company's operations and history.

This is not financial or investment advice. The information provided should not be considered a substitute for professional consultation regarding financial matters, investment decisions, or legal compliance within the oil and gas industry. Always consult with qualified professionals and refer to official company disclosures and regulatory filings for accurate and up-to-date information.

The creators of this content are not liable for any errors, omissions, or actions taken based on the information presented herein.

Tullow Oil: Navigating Global Energy Frontiers

💡 Dive in with Flashcard Learning! 💡

Company Overview ℹ️

🏢 Corporate Identity

📈 Financial Performance (2023)

Market Presence & Operations

Historical Trajectory ⏳

🚀 Foundation and Early Growth

🌍 Key Exploration Discoveries

⚠️ Challenges and Criticisms

Key Projects & Ventures 🏗️

❄️ Barents Sea Exploration

🇬🇫 French Guiana Venture

🇬🇳 Guinea Concessions & Investigations

Controversies and Disputes ⚖️

🏛️ Heritage Oil Tax Case

🗣️ Political Lobbying & Tax Avoidance

💰 Tax Disputes and Bribery Allegations

🏞️ Kenyan Opposition & Waste Dumping

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Dive in with Flashcard Learning!

Company Overview

Corporate Identity

Financial Performance (2023)

Historical Trajectory

Foundation and Early Growth

Key Exploration Discoveries

Challenges and Criticisms

Key Projects & Ventures

Barents Sea Exploration

French Guiana Venture

Guinea Concessions & Investigations

Controversies and Disputes

Heritage Oil Tax Case

Political Lobbying & Tax Avoidance

Tax Disputes and Bribery Allegations

Kenyan Opposition & Waste Dumping

Teacher's Corner

True or False?

Test Your Knowledge!

Gamer's Corner

Discover other topics to study!

References

Feedback & Support

Important Disclaimers

AI-Generated Content Notice