Exploration company Tullow Oil is to reduce its headcount by 35pc after it reported a loss after tax of $1.7bn last year, on the back of exploration write-offs and impairments.
Included in the write-downs is the decision by Tullow to increase its Uganda write-off by $500m.
Revenue for the year also came in at $1.7bn, according to its annual results.
Tullow had free cash flow of $355m and year-end net debt of $2.8bn.
The company has suspended its dividend and lowered its capital expenditure for this year by 30pc to $350m.
Areas of potential investment to maintain long-term production and reserve recovery identified at both Jubilee and TEN fields, the group said.
Group production this year-to-date in line with expectations; and the company’s full year guidance is 70,000 - 80,000 barrels of oil per day.
On the back of a disappointing business performance, Tullow saw the departure of its CEO Paul McDade in December.
Dorothy Thompson, chair of Tullow Oil, described it as an “intense period” for the group.
“We are focused on delivering reliable production, lowering our cost base and managing our portfolio to reduce our debt and strengthen our balance sheet.
Even with recent events in oil markets, Tullow's assets remain robust: we are a low-cost African oil producer, with a strong hedging position, substantial reserves that underpin our business and a high potential exploration portfolio."