Tullow Oil has granted substantial share option awards to its chief executive officer and chief financial officer under a long term incentive plan that ties payouts to the company’s share price performance over the next three years.
Ian Perks, who joined as CEO in September 2025, received options over 6.8 million ordinary shares at an exercise price of £0.1068 per share under the 2023 Executive Share Plan. Richard Miller, the CFO who previously served as interim CEO, was granted options over 6.5 million shares at £0.15338 per share.
The awards, granted as nil cost options on October 3, 2025 for Perks and March 28, 2025 for Miller, will vest only if specified total shareholder return targets are met during a three year performance period running from 2025 through 2028. This structure aligns executive compensation directly with returns delivered to shareholders.
Even if the performance targets are achieved and the options vest, both executives will face an additional two year holding period during which they cannot exercise the awards. This extended timeframe means neither executive could realize any value from these grants until at least 2030, creating a long term alignment between management and shareholder interests.
The company did not disclose the specific total shareholder return targets that must be met for the options to vest. Total shareholder return measures the combination of share price appreciation and dividends received over the performance period.
Perks brings over 30 years of upstream oil and gas experience to Tullow, particularly in Africa and other international locations. He previously held senior positions at major energy companies including BG Group, Anadarko and Total before joining Tullow to replace Miller as CEO.
The majority of Tullow’s production comes from the Jubilee and TEN fields in Ghana, where the company is focused on optimizing output from mature assets as part of its debt reduction strategy. The company recently signed a memorandum of understanding with the Government of Ghana to extend production licenses to 2040.
Tullow has been working to strengthen its financial position following years of operational and financial challenges. The company repaid in full its Senior Notes which matured on March 1, 2025, with the principal repayment of $493 million funded through a combination of drawing down $270 million under the Glencore Facility and cash on balance sheet.
The share option grants represent a significant potential payout for both executives if the company’s share price performs well over the coming years. However, the five year timeline from grant to potential exercise, combined with performance conditions tied to shareholder returns, ensures that executives will only benefit if investors also see meaningful gains.
Under the structure of nil cost options, the executives pay nothing to acquire the options initially and will pay only the nominal exercise price when converting them to shares if vesting conditions are met. The exercise prices of £0.1068 and £0.15338 are essentially administrative amounts, with the real value coming from any appreciation in Tullow’s share price above those levels.
The notification of these transactions was made by Adam Holland, an officer of the issuer, on October 7, 2025 in compliance with UK Market Abuse Regulation requirements for disclosure of transactions by persons discharging managerial responsibilities.
Tullow Oil is listed on both the London Stock Exchange and Ghana Stock Exchange under the ticker symbol TLW. The company operates as an independent oil and gas explorer and producer with operations focused primarily in West Africa.
The grants come as Tullow continues implementing a strategy focused on generating sustainable free cash flow to support debt reduction while maintaining production from its core Ghana assets. The company has targeted reducing annual net general and administrative costs to $40 million in 2025, with group savings of approximately $50 million planned over the next three years compared to 2024 levels.
Ghana drilling operations resumed in May 2025 following a successful resolution to a tax arbitration with the Ghanaian government. The company has planned four additional Jubilee wells for 2026 as it works to optimize production from its existing fields.
The long term nature of these executive compensation awards reflects a board strategy to retain key leadership through a multi year operational and financial turnaround period while ensuring management remains focused on delivering value to shareholders rather than pursuing short term gains.
Source: newsghana.com.gh
