Sunday 20 October 2019

Tullow Oil lowers production guidance following 'technical issue'

Tullow Oil CEO Paul McDade
Tullow Oil CEO Paul McDade
Ellie Donnelly

Ellie Donnelly

Tullow Oil has lowered its 2019 oil production guidance to 90,000 - 98,000 barrels per day, following technical issues in Ghana, which have now been resolved.

The Dublin-listed company had previously forecast oil production of 93,000-101,000 barrels of oil per day for the year.

In the first three months of 2019 Tullow produced an average output of 84,600 barrels of oil per day, according to a trading update from the group.

Current production is back up to around 95,000 barrels a day.

At 31 March 2019, net debt at the company was $3bn (€2.7bn), with $1bn (€89m) of liquidity headroom and no near-term debt maturities.

In the past three months the group has won three new licences in the Malvinas West Basin in the recent Argentina bid round, with work due to begin in 2020.

Later today the board will be asking Tullow shareholders to approve the group's first dividend payment since 2014, which chief executive Paul McDade said reflected “the financial and operational progress that Tullow has made over the past few years”.

“Oil production from our West African portfolio is currently running at 95,000 bopd after a short-term production issue in the first quarter and is due to grow in the second half of the year and beyond,” Mr McDade added.

“In South America, our exploration team is busy preparing for our exciting exploration campaign in Guyana."

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