COMPANY PROFILE -Tullow Oil
Business Sector :Energy, Oil and Gas Exploration & Production
Operating Geography :United Kingdom, Europe, Global
About Tullow Oil :
Tullow Oil is a British oil and gas exploration and production company. The company was founded in 1985 and is headquartered in London, UK. Tullow Oil operates in Africa, Europe, South America, and Asia, with a particular focus on Ghana, Kenya, Uganda, and Guyana. Tullow Oil is primarily involved in the exploration, development, and production of oil and gas. The company has a diverse portfolio of assets, including onshore and offshore exploration licenses, production assets, and development projects. In addition to its upstream activities, Tullow Oil also has a midstream business, which includes ownership of pipelines and other infrastructure. Tullow Oil has a strong track record of discovering and developing new oil and gas fields. The company's biggest success to date has been in Ghana, where it discovered the Jubilee field in 2007. Tullow Oil is also a major player in the oil and gas industry in Kenya and Uganda, where it has made significant discoveries in recent years. As of early 2023, Tullow Oil employed over 350 people.
The USP of Tullow Oil is its expertise in discovering and developing oil resources in under-explored or difficult. Tullow Oil’s purpose is to build a better future through responsible oil and gas development.
Tullow Oil Revenue :
US$ 1,273 million - FY ending 31st December 2021 (y-o-y decline 8%)
US$ 1,396 million - FY ending 31st December 2020
Competitive Analysis of Tullow Oil
The SWOT analysis for Tullow Oil is presented below in a matrix followed by the detailed analysis report:
Strengths | Weaknesses |
1. Competitive advantage due to high production efficiency of 98%
2. Continuous improvement in daily average production
3. Strong drilling performance with greater efficiency
4. Transformational refinancing of debt increasing groups financial resilience
| 1. Decrease in 2P reserves with poorer than expected field performance
2. High production decline rates on particular wells at TEN
|
Opportunities | Threats |
1. Drilling of three new wells will help increase the total yearly production
2. Exploration of undeveloped reserves at Jubliee and TEN
3. Continuation of exploration licenses on 10BA and 12B blocks for steady stream of income
| 1. Tullow Oil is highly vulnerable to volatility in Oil prices
2. Loss of potential revenue from non-operated portfolio
3. Decommissioning of fields in UK and Mauritania may result in significant cash outflow
|
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Detailed SWOT Analysis of Tullow Oil
Strength
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Weakness
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Opportunity
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Threat
1. Tullow Oil is highly vulnerable to volatility in Oil prices: Tullow Oil is highly dependent on the price of oil and gas, which can be influenced by various factors which include global supply and demand, geopolitical events, and economic conditions. In the past, the company has experienced significant declines in revenue and profitability during periods of low oil and gas prices. The COVID-19 pandemic had a major impact on oil and gas prices in 2020-21, leading to a significant decline in demand and a sharp drop in prices. Tullow Oil was not immune to these market forces, and the company reported a loss in 2020 due to the decline in oil prices and the impact of the pandemic on its operations. However, the company has taken steps to mitigate the impact of commodity price fluctuations, including implementing cost-cutting measures and focusing on production from its lower-cost assets. These measures can help cushion the fluctuation in oil prices, but he greater threat to bottom line still remains.
The remaining section under "Threat" is available only in the 'Complete Report' on purchase.
The PESTLE analysis for Tullow Oil is presented below in a table followed by the detailed analysis report:
Political | Economic |
1. Political instability in operating countries resulted in delaying Tullow’s oil drilling plan
2. Increasing regulatory requirements for use of fossil will impact company profitability
| 1. Fluctuations in global oil and gas prices will significantly impact its revenue
2. High inflation & Currency fluctuations in operating nations will affect company’s profitability
|
Social | Technological |
1. Negative public opinion associated with drilling could affect Tullow’s reputation
2. Poor community relations could affect its ability to operate in certain areas
| 1. Advancement in technology driving Tullow Oil to invest in data analytics to reduce costs
2. Growing trend in usage of alternative fuels and renewable energy may impact company operations
|
Legal | Environmental |
1. Risk associated with breach of contractual obligations may impact company operation
2. Legal disputes and litigation in Uganda may impact its operations
| 1. Growing outrage against global warming driving Tullow Oil to reduce its carbon footprint |
Tullow Oil SWOT and PESTLE Analysis PDF Report is a custom report and will be delivered to your email inbox within 2 business days from purchase.
Detailed Pestle Analysis of Tullow Oil
Political
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Economic
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Social
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Technological
1. Advancement in technology driving Tullow Oil to invest in data analytics to reduce costs: The increasing use of data analytics in the oil and gas industry could impact Tullow Oil’s operations. Advances in technology and the increasing availability of data are driving changes in the way that oil and gas companies operate. Tullow Oil has recognized the importance of data analytics in improving its operations and reducing costs. In 2020, the company launched a digital transformation program aimed at improving its use of data and technology. However, the use of data analytics in the oil and gas industry is still in the early stages, and there are challenges associated with implementing these technologies. For example, data analytics requires significant investment in technology and infrastructure, as well as expertise in data science and analytics. There is also a risk that reliance on data analytics could lead to a loss of expertise and experience in traditional oil and gas operations. To address these challenges, Tullow Oil will need to continue to invest in technology and data analytics while also maintaining its expertise in traditional oil and gas operations. The company should also be prepared to adapt to changes in the technology landscape and invest in new technologies as they emerge.
The remaining section under "Technological" is available only in the 'Complete Report' on purchase.
Legal
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Environmental
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Major Competitors :
- VAALCO Energy
- EnQuest
- Gran Tierra Energy
- Jadestone Energy
- PetroTal
- Eland Oil & Gas
- Savannah Energy
Tullow Oil SWOT and PESTLE Analysis PDF Report is a custom report and will be delivered to your email inbox within 2 business days from purchase.
TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
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Tullow Oil Segmentation, Targeting and Positioning (STP) Analysis |
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Tullow Oil Ansoff Matrix Analysis |
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References used in Tullow Oil SWOT & PESTLE Analysis Report
1. Annual Report - https://www.tullowoil.com/application/files/9516/4811/6186/Tullow_Oil_plc_2021_Annual_Report_and_Account_Index.pdf
2. The Overprivileged West’s Delusion Of ‘Transitioning Away From Oil’ - https://www.forbes.com/sites/judeclemente/2023/02/19/the-overprivileged-wests-delusion-of-transitioning-away-from-oil/?sh=4a34d1553f1c
3. Argentine savers 'drown' under spiraling prices as inflation hits 99% - https://www.reuters.com/world/americas/argentine-teachers-doctors-drown-under-spiraling-prices-inflation-nears-100-2023-02-14/
4. Renewable energy – powering a safer future - https://www.un.org/en/climatechange/raising-ambition/renewable-energy
The detailed complete set of references are available on request in the 'Complete report' on purchase.
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Tullow Oil SWOT and PESTLE analysis has been conducted by Pratik Vora and reviewed by senior analysts from Barakaat Consulting.
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