Just a months after formation in 1985, Tullow Oil plc registered significance recognition following the signing of a license agreement in Senegal in 1986. This success is what the current oil giant, has capitalized on to establish itself in the murky oil market.
According to the company’s founder and Chief Executive Aiden Heavey, the concept of the formation of TullowOil, a name he derived from small town called Tullow, about 35 miles south of Dublin, Ireland where the first offices were developed, the concept for the development of the multinational was developed targeting field in Africa.
“I was talking to a friend of mine in the bank one day and he was talking about small oil fields in Africa, which had been left behind by the majors and had no-one to work them. That is where the idea came from. I contacted another friend of mine in the World Bank who told me about a project in Senegal”.
With largest activities in Africa oil fields, Tullow major capital investments have grown to full length. The multinational has acquired over 150 licenses across 25 countries with 67 producing fields. Tullow in 2012 produced on average 79,200 barrels of oil equivalent per day.
In 2006, Tullow’s remarkable record of exploration success began after making five oil discoveries in Uganda. It established its existence of a working hydrocarbon basin and marked the beginning of proving up a world-class major new oil province in the Lake Albert basin. According to the information on Tullow website, 2006 to Tullow oil plc was a “Transformational year.”
Still in Uganda, Tullow completed the purchase of Heritage Oil’s licences in the Lake Albert area in 2010 for $1.45bn and on 21 February 2012 completed a farm-down of two thirds of its interests to Total and CNOOC for US$2.9 billion. This later developed into a tax dispute which escalated to the international arbitration bureau and later an out of court settlement. See more