Operational Update

Tullow Oil PLC
21 December 2006



Tullow Oil Plc - West African Business Update

21 December 2006 - Tullow Oil plc (Tullow) announces first oil from the Okume
Complex in Equatorial Guinea and the acquisition of a package of interests from
the Gabonese Government.



A detailed update on Tullow's business will be provided in our Trading Statement
and Operational Update which will be released on 31 January 2007.


FIRST OIL FROM THE OKUME COMPLEX (Tullow 14.25%)



Crude oil production from the Okume Complex, offshore Equatorial Guinea,
commenced on 14 December 2006 at an initial rate of 4,000 bopd from a single
well.  Production will steadily increase during 2007 as more wells are brought
on stream and peak production of 60,000 bopd is expected to be achieved in
mid-2008.



The Okume Complex Project is a development of more than 40 wells utilising two
tension leg platforms, three fixed satellite platforms and a central processing
facility.  The oil from the development will be exported by tanker via a
Floating Production Storage and Offloading vessel which is shared with the
adjacent Ceiba Field in which Tullow also has a 14.25% interest.  This common
use of facilities provides significant operating cost benefits and the two
projects combined will make a significant contribution to Tullow's production
over the coming years.





ACQUISITION OF LICENCES IN GABON



Tullow has recently acquired a package of assets from the Gabonese Government
through a 50:50 Joint Venture with AIC-Petrofi Limited.  The package comprises
interests in three producing fields and back-in rights to a further nine
Exploration Licences. Two additional fields, presently held under exploration
licences, are awaiting development approval and are expected on stream over the
next 18 months.



The acquisition adds approximately 350 boepd of current production net to Tullow
from the Obangue (3.75%), Tsengui (3.75%)and Oba (5%) fields.  As the
development of these fields progresses and the two additional developments are
brought on stream, net working interest production is expected to rise to
approximately 1,000 boepd by early 2008.



The exploration licences are located in areas of significant potential and when
combined with Tullow's existing Gabonese interests give the Group exposure to
almost 40% of Gabon's currently licensed acreage. Although the consideration
cannot be stated for reasons of commercial confidentiality, it can be confirmed
that it represents less than 1% of Tullow's market capitalisation.

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

'We are delighted to announce further progress from our business in West Africa.
  First oil from the Okume Complex project ahead of schedule builds on our
existing production from the region and we look forward to further progress next
year as the Okume Complex moves towards peak production. The acquisition of the
Gabonese licences represents a good opportunity to extend our existing business
in the country where the Group is focussed on building a long-term production,
development and exploration business'.

For further information contact:
Tullow Oil plc                     Citigate Dewe Rogerson              Murray Consultants
([phone])                 ([phone])                  ([phone])
                                   Martin Jackson                      Joe Murray
Tom Hickey
Chris Perry





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 across 17 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 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, Congo (DRC), Madagascar, Angola and
Ghana.



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

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

                                      ENDS




                      This information is provided by RNS
            The company news service from the London Stock Exchange