Business Irish

Monday 22 July 2019

Shares in Tullow Oil on the rise after update

Tullow Oil CEO Paul McDade. Photo: Bloomberg
Tullow Oil CEO Paul McDade. Photo: Bloomberg
Ellie Donnelly

Ellie Donnelly

Shares in Tullow Oil were up 4pc yesterday on news that it expects to report gross profits of around $500m (€439m) for the first half of 2019.

In a trading update the Irish exploration company said it will report revenue of $900m (€790m) for the six month period.

However, in Kenya, delays by the Government in both acquiring land and securing water rights are delaying operations longer than originally forecast.

On the back of this, Tullow has reviewed its timeline, and a final investment decision is now expected to be made in 2020.

The group had previously expected to make the decision in 2019.

Meanwhile, in Uganda negotiations with respect to the tax treatment of the group's farm-out agreement with CNOOC and Total have not been finalised.

Tullow said it is currently considering all options in pursuing the sale of its interests in the East African country.

Paul McDade, CEO of Tullow, said the group had made "steady progress overall across the business in the first half of the year."

Tullow has predicted that first half production will be around 89,000 barrels of oil per day.

Indo Business

Also in Business