Business Update

Tullow Oil PLC
03 August 2006



Tullow Oil plc - International Business Update


3 August 2006 - Tullow Oil plc (Tullow) announces the award of a 50% interest in
Block 1/06 offshore Angola and first oil from its West Espoir development
project.

ANGOLA - TULLOW AWARDED 50% INTEREST IN BLOCK 1/06

Formal notice has been received from Sonangol E.P., the National Oil Company of
the Republic of Angola, that Tullow has been awarded a 50% operating interest in
Block 1/06, a 3,800 sq km oil exploration concession in the Lower Congo Basin,
offshore Angola. Tullow expects to enter into a Production Sharing Contract with
Sonangol E.P. in August 2006. A signature bonus of $US10 million will be payable
by the joint venture group.

Block 1/06, which extends from a water depth of 40m to approximately 300m,
contains three undeveloped oil fields, Pitangueira, Bananeira and Sapesapeiro.
Tullow's initial objective will be to evaluate the commerciality of these
discoveries by drilling two wells on two of the structures in late 2007.  As
part of the further work programme, a 600 sq km 3D seismic survey will be
conducted and a third exploration well will be drilled during the first
four-year period to test prospective intervals.

COTE D'IVOIRE - FIRST OIL FROM WEST ESPOIR

Oil production from the first West Espoir development well, in which Tullow has
a 21.33% interest, commenced on 26 July 2006.   This well, the first of five
production wells, came on stream at a production rate in excess of 5,000 boepd,
significantly ahead of expectations.

The development project, sanctioned in May 2004, includes a new wellhead tower
tied back via a 5.5 km pipeline to the Espoir FPSO where fluids produced from
East and West Espoir are co-mingled and processed using the existing facilities.
Together the two fields are currently producing over 35,000 boepd.

The rig will now drill four further production wells and two water injection
wells.  The West Espoir project remains within budget and is on schedule to
reach peak production of 10,000 boepd in late 2007.

Commenting today, Aidan Heavey, Chief Executive of Tullow said:

'We are delighted to further expand our offshore Angola portfolio with the
addition of this prospective acreage with both development and exploration
opportunities.  We look forward to continuing to develop our Angolan business
over the coming months and years.

First oil from the West Espoir development continues the strong organic
production growth already seen from the Group this year, building steadily
towards our target of 75,000 boepd by year end.'


For further information contact:

Tullow Oil plc            Citigate Dewe Rogerson            Murray Consultants
([phone])        ([phone])                ([phone])
Aidan Heavey              George Cazenove                   Joe Murray
Chris Perry               Nina Soon


Notes to Editors

Tullow is a leading independent oil & gas, exploration and production group,
quoted on the London and Irish Stock Exchanges (symbol: TLW) and is a
constituent of the FTSE 250 Index. The Group has interests in approximately 90
exploration and production licences in 15 countries and focuses on three core
areas: NW Europe, Africa and South Asia.

Tullow's NW Europe interests are primarily focused on gas in the UK Southern
North Sea where it has significant interests in the Caister-Murdoch System (CMS)
and the Thames/Hewett areas and operates over 60% of its production.

In Africa, Tullow has exploration and production in Gabon, Cote d'Ivoire, Congo
(Brazzaville) and Equatorial Guinea and a large gas field development and
appraisal programme in Namibia. Tullow also has exploration programmes in
Mauritania, Senegal, Cameroon, Uganda, Madagascar and Angola.

In South Asia, Tullow has exploration and production operations in Pakistan and
Bangladesh and high impact exploration activities in India.

For further information please refer to our website at www.tullowoil.com


                                      ENDS



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