Tullow profit drops on lower oil prices
Oil exploration company Tullow said earnings fell 92pc last year on lower oil and gas prices and a decline in output.
Profit dropped to £18.m (€20m) from £226.2m a year earlier, the company said today in a statement. Sales fell 16pc to £582.3m.
Tullow production fell 12pc to 58,300 barrels of oil equivalent a day last year as the company focused on investments in its exploration projects in Ghana and Uganda.
Tullow got an average of $60 a barrel for its oil in 2009, from $73.60 the previous year.
The company raised about £925m in a share sale in January to fund exploration and development in Africa. It also agreed to acquire for as much as $1.5bn Ugandan assets from Heritage Oil Plc.
Tullow said it expects to bring in China National Offshore Oil Corp and Total SA as partners to develop the resources and each company will hold a one-third share in the fields.
It is seeking approval from the Ugandan government for the transaction, expected to be signed in “coming weeks.”
Tullow forecast it will invest £990m in projects this year, up from £690m in 2009.
It expects extraction to average between 55,000 barrels and 57,000 barrels of oil equivalent a day this year. The company plans to drill 30 exploration wells in 2010.