Capital Markets Day
Tullow Oil plc | 2020 Capital Markets Day 25 November 2020 2020 Capital Markets Day
Agenda Presenters
1 2 A NEW APPROACH OPERATIONAL TURNAROUND Delivering enhanced value and cashflow Improving production efficiency and reliability
3 4 Rahul Dhir Les Wood GHANA NON-OPERATED Chief Executive Officer Chief Financial Officer Maximise value from large resource Investing in stable, sustainable production
5 6 KENYA AND EMERGING BASINS ENVIRONMENT, SOCIAL, GOVERNANCE Material value to unlock Retaining a strong focus
7 8 Wissam Al-Monthiry Julia Ross FINANCIALS CONCLUSIONS Managing Director, Ghana Director, People and Sustainability Underpinned by a robust financial framework
Tullow Oil plc | 2020 Capital Markets Day Slide 2 A year of significant change: Putting Tullow back on track
Leadership New CEO, leadership and lean organisation
Operational turnaround Focus on asset integrity, process safety, maintenance and reliability
Cost focus Ghana operating costs and corporate G&A significantly reduced
Capital discipline Flexible opportunities identified to allocate future investment capital
Capital structure Successful RBL redeterminations and Uganda proceeds received
ESG focus Continue to create lasting social and economic benefits
Maximising value 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
Rahul Dhir Chief Executive Officer
Joined Tullow 2020; formerly Delonex, Cairn India, Morgan Stanley
Les Wissam Mike Julia Jean-Medard Amalia Madhan Wood Al-Monthiry Walsh Ross Madama Olivera-Riley Srinivasan Chief Financial Officer Ghana General Counsel People & Sustainability Non-op Exploration Kenya
→ Commercial & Planning → Health & Safety → Information Systems → Shared Prosperity → Gabon, CdI, EG → Africa → Development concept → Finance → Integrated technical → Insurance → Human Resources → Non-op technical → NFE and ILX1 → Licence renewal → IR & Corporate Affairs functions → Internal Audit & Risk → Internal Comms. → Stakeholder & JV → South America → Stakeholder & JV → M&A → Stakeholder & JV → Legal Management → Subsurface Management → Oil Marketing Management → Tax → Treasury
Joined Tullow in 2014 as Joined Tullow in 2020; Joined Tullow in 2020; Joined Tullow in 2001; Joined Tullow in 2012; Joined Tullow in 2019; Joined Tullow in 2014; VP Commercial; formerly at BP and formerly at Delonex, formerly Corporate formerly at formerly at Repsol and formerly at Essar Energy formerly at BP Goldman Sachs Cairn India Finance at Tullow Schlumberger ExxonMobil and BP
Senior Leadership Team (SLT) Subsurface & Well Engineering Geoscience Technical Advisors Baringa Intera Petroleum & Auditors Partners in Performance Consultants Striatum TRACS
Tullow Oil plc | 2020 Capital Markets Day Slide 4 1 Near-field exploration and infrastructure-led exploration New approach delivers material value and cash flow
Production base with material resource play Significant positions in discovered and emerging basins 2021-30
Operational >95% uptime target turnaround c.$7bn operating CF1 171 <$11 opex/bbl target Net 2C Kenya Cost mmbbls focus c.$2.7bn 2021-30 capex c.$4bn cash flow available for debt service and Capital 2 Net risked oil recovery shareholder returns
discipline >40% prospective Unlocking value Unlocking c.900 resources in mmbbls 2P/2C Upside mmboe emerging Geoscience >600 from producing Undeveloped resource and basins assets gas commercialisation
>90% capital allocation Managing capital exposure
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+ Tullow Oil plc | 2020 Capital Markets Day Slide 5 Well defined and profitable investment opportunities
Attractive portfolio of African production investments
200% >80% c.$11/bbl IRR on Average investment 1 development cost 150% portfolio
$65/bbl Value accretive producing assets 100% Combined IRR1 → Significant improvement in reliability and profitability → More than 60 well-defined and de-risked investment options identified
$45/bbl IRR (%) IRR → Short payback projects and a self-funded cashflow profile → Prioritising investments in producing assets (>90% of Group capex) 50% → Average IRR of >130% at $65/bbl and >70% at $45/bbl → Significant value creation for host governments
0% Flexibility to manage capital investment $0 $500 $1,000 $1,500 $2,000 $2,500 Cumulative Capex ($m)
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 Visible production with acceleration potential3
700 80 75 2P reserves 600 243 Improved recovery, NFE and ILX4
c.260 op
500 60 -
) Non
400
mmboe 2C resources 3% 402 40 from producing 2021-30
300 assets only
Volume ( Volume TEN 100% (kbopd) Production $2.7bn capex 200 YTD 2020 c.380 reserves 20 replacement2 97% 100
0 0 Jubilee 2P-2C reserves & 2021-30 production Residual recoverable 20f 21 22 23 24 25 26 27 28 29 30 resources1 resource1 1 2C resources from producing assets only, excludes Kenya and Guyana 2 As at 30 September 3 All numbers Tullow working interest Tullow Oil plc | 2020 Capital Markets Day Slide 7 4 Near-field exploration and infrastructure-led exploration 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 Water injection efficiency
• Closely integrated Tullow oversight • Water injection remains a key area of focus on Jubilee • Improvement to processing systems reliability • Greater water injection volumes to sustain reservoir → Defect elimination process pressure and improve sweep efficiency → Well optimisation • Three water injection pumps operational on Jubilee with → Maintenance and integrity management injection capacity building up to >300kbw/d • Sustaining performance by embedding efficiencies • Aligning full system infrastructure to sustain capability
Improved uptime performance in Ghana Addressing water injection reliability and capacity Uptime (%) Jubilee water rate (kbw/d)
98% > 95% 130 180 270 300 91% 92%
2018 2019 2020f 2021+ 2017-19 2020-21f 2022 YE23+ average average
Tullow Oil plc | 2020 Capital Markets Day Slide 11 Improving gas offtake performance
Opportunity Reliable gas offtake supports oil production Gas rate (mmscf/d ) • Higher gas export improves reservoir management, enhances oil production and minimises emissions >200 mmscf/d including gas commercialisation • Delivers material value for Ghana
2020 Progress 135 exit rate 130+ 130+ • Record levels of gas export built up over 2020 106 • Improvements in facilities reliability through targeted interventions 73 65 44 • Onshore gas demand stabilising 1H 2019 2H 2019 1H 2020 2H 2020f 2021 2022+ • Alignment with Government on projected gas offtake Forward plan Growing gas processing capacity → Maintain gas performance with sustained facilities uptime Gas rate (mmscf/d) 250 190 → Debottleneck gas handling capacity on Jubilee FPSO 140 → Target to increase gas offtake beyond 130mmscf/d
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 TEN Cost savings being delivered
450 Asset operating costs (gross) 50 450 Asset operating costs (gross) 50
400 Opex 45 400 Opex 45 Reduction of equipment $406m Opex/bbl Opex/bbl vulnerabilities 40 40 350 350
35 35 300 300 Continuous opportunity $304m 30 30 identification with consultant 250 250 support c.$240m 25 25 200 200 20 20 Maximise leverage through the $177m 150 150 supply chain 15 $148m c.$150m 15
100 100 $12.7 10 10 c.$11.5 $9.9 c.$9.0 50 5 50 $7.9 $8.3 5 Cost-driven performance management - - - - 2019 2020f 2021 2019 2020f 2021 Axis Title Axis Title Tullow Oil plc | 2020 Capital Markets Day Slide 13 1 2019 and 2020 include opex associated with turret remediation Delivering improved drilling performance
Driving future drilling costs down by c.20% Top quartile drilling performance Drilling cost per well ($m gross)
Simplified well design and 75 reduced completion complexity
60 Continuous improvement Improved rig reliability through <$60m enhanced maintenance assurance
Integrated planning across subsurface, drilling and projects teams
Advanced alignment with JV Partners on well targets 1 2018-20 well costs Reduce rig downtime Reduce well Supply chain scaling 2021+ target complexity
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 Options to increase field Safely maximise production recovery, develop near-field and ILX discoveries and commercialise the efficiency significant gas resources Cost focus Delivering a sustainable low- Plans in place to develop discovered cost business and organisation resource base over the next 10 years Capital discipline Allocate capital to high return, Low-cost opportunities identified to short cycle development pursue from 2021 to build production opportunities and cash flow Geoscience Maximise recovery and deliver High quality portfolio of oil producing significant upside fields and infrastructure provides solid platform opportunities within licence
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 17% RF 30% 210 RF 17% RF 9% 130 308 85 85 1 STOIIP Production to No further activity Defined projects Additional STOIIP Production to No further activity Defined projects Additional Sept-20 recovery Sept-20 Recovery
1 Stock Tank Oil Initially In Place Tullow Oil plc | 2020 Capital Markets Day 2 Recovery Factor Slide 17 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 10-15 2022 kbopd Jubilee wells planned Producer/ injector pair initial production South East over 2021-30 rate per well 2023 140 Two producers online mmbbls oil Jubilee 2024+ North East Follow-on wells 1-2 >90% in SE and NE year payback IRR
23 10-15 Ntomme kbopd wells planned Far West initial production over 2021-30 rate per well Enyenra 2022-24+ North 90 Projects progressing mmbbls oil towards FID Enyenra 1-2 >70% South year payback IRR
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
Significant opportunity to Maximising recovery1 commercialise gas resource1
c.1TCF Additional oil recovery in Jubilee of recoverable gas resource → Targeting more than 40% ultimate recovery in Jubilee → Around 100mmbbls of additional recovery potential Already connected to onshore infrastructure
Greater Ntomme Tweneboa (GNT) Area Long term supply potential (10+ years) → More than 350mmbbls of undeveloped STOIIP → Utilising existing subsea infrastructure Multiple gas commercialisation options Tweneboa West → More than 30mmbbls of undeveloped STOIIP Dedicated JV taskforce → Fast development, tie back to existing infrastructure to progress
1 All numbers on a gross basis Tullow Oil plc | 2020 Capital Markets Day Slide 20 Near-field and infrastructure-led opportunities
Ghana Côte d’Ivoire
• Several near-field prospective opportunities identified • Underexplored block adjacent to TEN field infrastructure • Low risk, commercially attractive, accelerated tie-in targets • Westward extension of proven plays in TEN/Jubilee • Estimated volumes >100mmboe STOIIP (gross) • Current focus: seismic re-processing and prospect maturation • Discussions with Government on access commenced
A B Enyenra Tweneboa West
Danta
Seismic anomalies (reds) representing reservoir 2km
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
Sustainable production Stable cash flow; 22 - 25 kboepd Self-funded portfolio Strong JV Proven execution partnerships capability Côte d’Ivoire Equatorial Guinea
Gabon 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 → Working interest range 7.5-57.5% 30 Gabon Equatorial Guinea Côte d'Ivoire 25 25 25 22 22 22 Equatorial Guinea (c.5kbopd 2020) 20 → Light oil, five fields, offshore → Working interest 14.25% 15 2021-30 average production including defined projects and further opportunities Côte d’Ivoire (c.2kboepd 2020) 10 → Light oil and gas, two fields, offshore 5 → Working interest 21.3% 0 2016 2017 2018 2019 2020f 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
1 All numbers Tullow working interest 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 Kenya Guyana 50.0% to 100.0% 37.5% to 60.0% Côte d’Ivoire Four blocks Kenya → Material recoverable Two blocks 60.0% to 90.0% 3D repro. Two blocks Billion barrels resource base 3D seismic repro Gross STOIIP Suriname 1.5 → Licences extended 50.0% to 100.0% Million barrels Three blocks → Development plan being One well 171 2C working interest resources 2D seismic revisited for low oil prices Prospective net risked resources Namibia in emerging basins Emerging basins 35.0% to 56.0% Two blocks → Material positions in emerging Guyana Suriname oil provinces Peru → Significant intellectual capital 35.0% to 100.0% 16% Four blocks Cote d'Ivoire being invested 2D repro 6% → Suriname well (GVN-1) 44% 900 10% Namibia → Guyana prospect maturation Argentina mmboe 40.0% to 100.0% → Argentina 3D seismic Three blocks 3D Seismic 24% Argentina
2021 drilling Tullow Oil plc | 2020 Capital Markets Day Slide 26 Kenya development concept under review
Ingredients for a profitable low-cost project
Material high 1.5 billion bbls • Shallow, productive reservoirs quality onshore • Light waxy crude resource base STOIIP (gross) • Large onshore acreage position
Licences December • Conditional on approval of budgets • Plan to fully review development concept extended 2021 • Ensure project robust to low oil prices
Upstream and midstream FEED; upstream bids; Technical pipeline tender
Significant EOPS Critical data; first crude export; stakeholder engagement progress made Commercial Key agreements drafted; to date 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 Well count Additional discovered fields; More drilling; increased plateau rate and duration lower unit cost Licence extensions will provide time to evaluate options
Production Opex Feedback Increased rates by Kenya Lower opex via from farm down process is being targeting high An improving similar field incorporated productive wells at value proposition analogues, crest; EOPS learning particularly reduced well opex Economics Water Capex to be improved through Improved sweep efficiency and Economies of scale development concept and cost increased number of injectors 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-Voltzberg North-1
Block 47 Tullow 50% (op) GVN-1 paying interest c.36% Planning for 1Q21 spud Block 62 Tullow 80% (op) 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
High grading drill candidates for Kanuku 2022 Three plays proven on Tullow acreage 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
Net Zero (Scope 1 and 2) commitment – possible decarbonisation levers
5 Year Plan Options for decarbonisation roadmap
2020 Gas emissions utilisation baseline and gas Higher 2020 emissions reinjection Carbon
intensity, from increased re
flaring in Ghana ductionoptions Ongoing initiatives Remaining Long-term gas offtake addressable Small process emissions Energy options support modifications efficiency Power generation elimination of flaring Carbon offsets
Net Zero delivery plan being developed 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 Strategic local content in Ghana
→ $1.5bn spent with local suppliers since 2015
>500 3,000 → c.30% of supply chain expenditure has been educational with indigenous companies over last three years bursaries scholarships
c.25% Targeted Upgrading aviation development: focus on infrastructure at Takoradi of Ghana's gas demand for marine sector led to Airport Air Force Base domestic power supplied $10 million committed over 5 years first Ghanaian owned creating an enhanced at zero cost, providing to Government of Ghana’s flagship and flagged Offshore operational base for oil and Free Senior High School initiative, Supply Vessel gas sector and beyond access to electricity to 6.7 providing access to education for all million individuals
Shared Prosperity for all stakeholders
Tullow Oil plc | 2020 Capital Markets Day Slide 34 Strong internal and external transparency and governance
First oil company to publicly support c.$3.4bn contract transparency socio-economic contribution 2015-19 Leading disclosure on Modern Slavery in Transparency in the Supply Chain Report
Socio-economic contribution ($m) Human Rights Policy embedded in
778 Code of Ethical Conduct 800 708 719 719 700 Strong Anti-Bribery and Corruption governance 600
500 462 Female Board
400 representation at 33%
300 Workforce Advisory Panel meeting 200 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 1H20 60 Dramatic crash and rebound
Tullow plans based on $45/bbl in 2021, $55/bbl flat nominal in 2022+ following OPEC+ deal )
bbl Hedging 40 remains a key
risk management tool Oil price ($/price Oil $55/bbl 20 in line with low end of External range (sources below) Dated Brent external range FWD curve (24-Nov) 1 Hedging floor protected 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 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, Tullow Oil plc | 2020 Capital Markets Day Slide 37 Investec, Jefferies, JPM, Morgan Stanley, Mackie Research, Mirabaud, Panmure Gordon, Pareto, Peel Hunt, RBC, Shore Capital, Societe Generale, Stifel, UBS and WH Ireland New approach underpinned by a robust financial framework
Strengthened Disciplined Focused on balance sheet… capital allocation… value creation…
→ Drive Net Debt to $1.0bn - → >90% of investment → Prioritise investments with 1.5bn focused on producing high returns and short assets payback → Gearing at lower end of range of 1-2x → Flexible $150-450m capital → Maximise value from expenditure range producing asset portfolio → Liquidity headroom of no less than $500m → 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) 25 Net operating costs Gross G&A Headcount reduced by c.60% Net G&A Unit opex 369 $350 351 20 Outsourcing of certain routine activities $300 320 c.300 1 280 c.280 $250 Continue to pursue further efficiencies 15
11.7 c.12 $200 11.1 <11 Operating cost reduction to <$11/boe 10 c.160 c.160 $150 112 Bottom-up review with external consultants
75 $100 5 50 50 Requirement for shuttle tankers removed $50
Cost-driven performance management $- 0 2019 2020f 2021 2021-30 average 2019 2020f 2021 2021-30 average
Tullow Oil plc | 2020 Capital Markets Day Slide 39 1 Excluding restructuring costs Disciplined capital allocation
Increasing allocation towards producing assets Maintaining a flexible capex range ($m)
500 Ghana Non-op Kenya Exploration
400 >90% 80% 60% 50% 325 Flexible range 300 290 60 150-450 2019 2020f 2021 2022+ 5 85 Producing assets Other investments 80 200 20
Ability to reduce capital to respond to volatile oil price environment 65
100 180 120 2021 investing 80% of capital expenditure in producing assets
0 2021-30 $2.7bn of total investment 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-operated decommissioning obligations in the UK will be completed in 2020 • Expenditure offset by c.$140 million UK tax relief Annual UK and Mauritania decommissioning exposure ($m) decommissioning 530 300 costs set to reduce
Mauritania materially from 2022
190
UK
40
1 1 Liabilities 2016-20 2021-22 2023-25
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 Efficient execution
$500m → Good collaboration with the Reduced net Government and Total Paid at completion: debt to $2.4bn 10 November → Closed 7 months from signing $75m → Tax agreement up front All future Uganda Payment on Uganda FID → Operatorship agreed promptly capital exposure Contingent payments → No JV Partner pre-emption eliminated Oil price related → Employee transfers to Total No impact on RBL Considering further asset sales provided they are value accretive and debt capacity strengthen the balance sheet
Tullow Oil plc | 2020 Capital Markets Day Slide 42 New approach supports deleveraging and value creation
$1bn1 $2.4bn1 $4bn2 Sources and uses of cash ($bn) Liquidity Net Cash 2021-30 headroom debt flow $10 $9
$8 $65/bbl
$7 $55/bbl Debt service and $6 shareholder returns A clear path to deliver net debt in range of $1-1.5bn and $5
gearing at lower end of 1-2x range Deleverage to $4 Operating reach target cash flow $3 Decom
Solid foundations in place to address debt maturities; $2 Capex advisors appointed to progress refinancing options $1
$0 Sources Uses
1 As of 10 November 2020 2 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 Significant value underpinned by a large resource base turnaround c.$7bn operating CF1 Focus on costs to maintain high margins at low prices Cost focus c.$4bn cash flow available Delivering sustainable self-funded production for debt service and Capital shareholder returns2 discipline
Discovered and and Discovered Material options to generate additional returns Upside basins emerging Geoscience Undeveloped resource and gas commercialisation Strong cash flows for debt reduction and equity growth
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+ 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: [email protected] Web: www.tullowoil.com
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