Description
SWOT ANALYSIS OF TULLOW OIL
Tullow Oil
Parent Company
Tullow Oil
Category
Oil and Gas
Sector
Energy
Tagline/ Slogan
-
USP
Africa’s largest independent oil company STP
Segment
Enterprises with energy requirements
Target Group
Entities which require oil and gas
An independent oil and gas exploration, development and production Positioning group SWOT Analysis
1. Headquartered in London, it has a strong presence across several African countries (generating a major share of its revenues from Africa), which gives it a competitive edge 2. Its strategy of selective development of assets (either choosing an asset or selling it fully, or in part) helps it derive maximum benefit from its asset base 3. Its growing and improved reserve base in the African nations is heralding financial benefits for it 4. Its improved operational efficiency as a result of its drilling in geological formations similar to those in which oil has already been discovered at other locations 5. Its strong financial performance in the recent past through portfolio activities and refinancing Strength 6. Over 1400 employees are a part of the company
1. The global economic turmoil and the Eurozone crisis have resulted in Tullow Oil having less to limited liquidity 2. Increasing operating costs has lead to a serious decline in its operating cash flow per oil barrel as well as cash generated from operations 3. Increase in debt funding and high existing debts(net $989 million nearly) have increased its burden of repayment and can adversely Weakness impact its overall profitability
1. Robust capital expenditure plans (split strategically between exploration, appraisal, development and potential portfolio management activities) will help it optimally utilize its existing resources 2. Increasing demand for lighter less viscous crude oil (light oil) which is currently one of the focus areas of Tullow Oil, will prove advantageous for it and help it gain increased revenues 3. Increasing oil demand from China, India and other emerging Asian markets will allow it to offset risks emanating from a slump in oil demand from developed markets in US and Europe, as well as increase its future revenues 4. Its geographic spread across Europe and Africa where it is undertaking several new exploration and development activities will Opportunity add to its overall production growth
1. Intense competition from other players in the market, which are larger in terms of finances and support base, and with integrated operations, pose the risk of its market share getting eroded 2. Global economic risks can lead to uncertain and heavy fluctuations of oil and gas prices, which can adversely affect its production and revenues 3. Geo political risks in the countries in which it operates are outside its control and as such, in unforeseen circumstances, an adversely impair its operations 4. Increasing presence of Asian NOCs (Nationalized Oil Companies) in the African continent, which is its main asset base, can pose a risk to Threats its revenues Competition
1. Chevron Corporation Competitors 2. Murphy Oil Corp. 3. Cairn Energy
4. Falkland Oil and Gas Ltd.
doc_438176072.docx
SWOT ANALYSIS OF TULLOW OIL
Tullow Oil
Parent Company
Tullow Oil
Category
Oil and Gas
Sector
Energy
Tagline/ Slogan
-
USP
Africa’s largest independent oil company STP
Segment
Enterprises with energy requirements
Target Group
Entities which require oil and gas
An independent oil and gas exploration, development and production Positioning group SWOT Analysis
1. Headquartered in London, it has a strong presence across several African countries (generating a major share of its revenues from Africa), which gives it a competitive edge 2. Its strategy of selective development of assets (either choosing an asset or selling it fully, or in part) helps it derive maximum benefit from its asset base 3. Its growing and improved reserve base in the African nations is heralding financial benefits for it 4. Its improved operational efficiency as a result of its drilling in geological formations similar to those in which oil has already been discovered at other locations 5. Its strong financial performance in the recent past through portfolio activities and refinancing Strength 6. Over 1400 employees are a part of the company
1. The global economic turmoil and the Eurozone crisis have resulted in Tullow Oil having less to limited liquidity 2. Increasing operating costs has lead to a serious decline in its operating cash flow per oil barrel as well as cash generated from operations 3. Increase in debt funding and high existing debts(net $989 million nearly) have increased its burden of repayment and can adversely Weakness impact its overall profitability
1. Robust capital expenditure plans (split strategically between exploration, appraisal, development and potential portfolio management activities) will help it optimally utilize its existing resources 2. Increasing demand for lighter less viscous crude oil (light oil) which is currently one of the focus areas of Tullow Oil, will prove advantageous for it and help it gain increased revenues 3. Increasing oil demand from China, India and other emerging Asian markets will allow it to offset risks emanating from a slump in oil demand from developed markets in US and Europe, as well as increase its future revenues 4. Its geographic spread across Europe and Africa where it is undertaking several new exploration and development activities will Opportunity add to its overall production growth
1. Intense competition from other players in the market, which are larger in terms of finances and support base, and with integrated operations, pose the risk of its market share getting eroded 2. Global economic risks can lead to uncertain and heavy fluctuations of oil and gas prices, which can adversely affect its production and revenues 3. Geo political risks in the countries in which it operates are outside its control and as such, in unforeseen circumstances, an adversely impair its operations 4. Increasing presence of Asian NOCs (Nationalized Oil Companies) in the African continent, which is its main asset base, can pose a risk to Threats its revenues Competition
1. Chevron Corporation Competitors 2. Murphy Oil Corp. 3. Cairn Energy
4. Falkland Oil and Gas Ltd.
doc_438176072.docx