Tullow Oil Cuts Output Guidance

Thursday, April 25, 2019

Tullow Oil downgraded its 2019 output guidance to 90,000-98,000 barrels of oil per day (bpd) due to problems at its Ghana fields and sees final go-aheads for its Uganda in the second half while its Kenya project timeline was "ambitious".

"(Ghana) performance was below expectations due to gas compression constraints on Jubilee during February and a delay in completing the Enyenra-10 production well at the TEN field. Both issues have now been resolved," Tullow said on Thursday.

It had previously expected to produce between 93,000 and 101,000 bpd.

"The ~3 percent reduction in 2019 net production guidance provides a headline, but should not concern investors in our view," Barclays said in a note.

With much focus on Tullow's three-well drilling programme offshore Guyana, this year is also crunch time for Tullow's East African projects.

Final investment decisions for its Ugandan project had been planned around mid-year and Kenya by the end of the year, which Tullow called "an ambitious target" on Thursday.

The shipment of a first cargo of Kenyan oil to test the market, which was originally planned in the first half as well, is expected to sail in the third quarter, Tullow said.

In Uganda, a $208 million payment after selling a stake in its onshore fields to Total in a so-called farm-down deal was delayed last year because the country asked for more tax on the deal than expected.

"These discussions are expected to conclude shortly and will enable completion of the farm-down," Tullow said.

It has reduced its debt from $3.1 billion at the end of 2018 to $3 billion at the end of March.

It has hedged 56,000 bpd this year at a floor price of $56.40 per barrel and 31,000 bpd at $58.68 a barrel for 2020.


(Reporting by Shadia Nasralla; Editing by Jason Neely and Mark Potter)

Categories: Production Africa

Related Stories

CDWE Wraps Up Pin Pile Installation Job for Taiwanese Offshore Wind Farm

Three Dead in Chevron's Angolan Oil Patform Fire

Fire Contained at Vietnamese Oil Platform Undergoing Decommissioning (Video)

Indonesia's Medco Starts Production at Natuna Sea Fields

Petrovietnam, Petronas Extend PSC for Offshore Block

CNOOC Sees 11% Profit Growth in 2024 Driven by Record Oil Production

CNOOC Starts Production at Two New Oil and Gas Projects

All Gas from Conrad’s Mako Field to be Sold to Indonesia’s PLN

Valeura Wraps Up Infill Drilling Campaign in Gulf of Thailand

CNOOC Starts Production at Offshore Oil Filed Equipped with CCUS Tech

Current News

Aker Solutions, PTAS JV Hooks Brownfield Services Extension off Brunei

CDWE Wraps Up Pin Pile Installation Job for Taiwanese Offshore Wind Farm

BP Expands Oil and Gas Scope in Azerbaijan with New Projects and Exploration Rights

Azeri SOCAR Plans New Agreements with Oil and Gas Majors

TPAO, SOCAR and BP to Ink Caspian Sea Oil and Gas Production Deal

Fugro Lands Deepwater Gas Field Job in Southeast Asia

OMV Exits Ghasha Gas Project off UAE with Lukoil Stake Sale

China's Sinopec Laucnhes $690M Hydrogen Venture Capital Funds

CIP, ACEN Partner Up for First Large-Scale Offshore Wind Farm in Philippines

Valeura Concludes Eight-Well Drilling Campaign in Gulf of Thailand

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com