Tullow Oil PLC on Wednesday said it has maintained a positive outlook for the year ahead, as higher production drove its annual revenue.

The London-based oil and gas explorer said revenue in 2023 rose by 25% to $1.6 billion from $1.28 billion a year ago.

Working interest production averaged around 63,000 barrels of oil equivalent per day in 2023, up from 61,000 the previous year. This includes 6,000 boepd from its Jubilee project, it said.

Tullow noted that water injection issues at Jubilee have bow been resolved, and credited ‘excellent drilling performance’ with four Jubilee producer and three Jubilee water injection wells brought on stream.

Looking ahead, the firm expects working interest production of 62,000 and 68,000 boepd for 2024. It is also on track to deliver the targeted $800 million free cash flow over the 2023 to 2025 period.

Chief Executive Officer Rahul Dhir said: ‘Continued delivery of our business plan in 2023 resulted in a major inflection point as we moved from a period of investment focus to delivery of free cash flow growth. We are on track to deliver around $600 million free cash flow over the next two years to achieve our stated target of around $800 million of free cash flow from 2023 to 2025 at $80/bbl.

‘The debt facility agreed with Glencore is a strong endorsement of our business plan and we have no material uncovered debt maturities until May 2026. At the same time, our assets are expected to deliver production growth, while we continue to maintain our laser focus on operational excellence and capital discipline.’

Tullow Oil will publish its full-year results on March 6.

Shares in Tullow Oil were up 4.6% to 31.60 pence each in London on Wednesday morning.

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