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Tullow Oil November Trading Update

Gasoil News - Published on Wed, 20 Nov 2019

Image Source: Tullow
Tullow Oil plc has issued Trading Update for the period 24 July to 13 November 2019. Mr Paul mcdade CEO of Tullow Oil said “Tullow expects to deliver robust free cash flow for the full year. This has been supported by our continued disciplined capital investment and underlines our commitment to further reduce our debt and pay returns to shareholders. Since the Group's last update, Tullow announced two oil discoveries in Guyana at Jethro and Joe, and recent analysis has shown that at these locations we have encountered heavy oil. We remain confident in the broader light oil potential of the Orinduik and Kanuku blocks located in this prolific oil basin. The first ever cargo of East African oil from Mombasa in August was an important milestone for Project Oil Kenya and we continue to make good progress with FID targeted in the second half of 2020. In West Africa, our non-operated assets continue to perform well. However, Ghana production has not met our expectations this year and we are working closely with our Joint Venture Partners to ensure that both fields perform to their potential.”

Trading Update Summary

Full year 2019 West Africa net oil production from Ghana and non-operated portfolio forecast to average c.87,000 bopd

Full year capex forecast of c.$540 million, free cash flow forecast of c.$350 million, full year net debt of c.$2.8 billion

Uganda farm-down lapsed; Tullow and Joint Venture Partners remain committed to the Lake Albert Development

Kenya exports East Africa’s first cargo of 240,000 barrels of oil from Mombasa

Good progress on Project Oil Kenya; targeting Final Investment Decision late 2020

Guyana exploration programme delivers two Tertiary oil discoveries; Carapa well underway targeting Cretaceous play

3D seismic survey completed in the Comoros; preparations underway for exploration well in Peru in the first quarter of 2020

Full year 2019 Group oil production, including production-equivalent insurance payments, is forecast to average around 87,000 bopd. This is slightly below guidance primarily due to Ghana production performance as detailed below. Gas sales from TEN are expected to average around 125 boepd for the full year.

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Posted By : Yogender Pancholi on Wed, 20 Nov 2019
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