Tullow Oil downgraded its 2019 output guidance to 90,000-98,000 barrels of oil per day (bpd) due to problems at its Ghana fields and sees final go-aheads for its Uganda in the second half while its Kenya project timeline was “ambitious”.
“(Ghana) performance was below expectations due to gas compression constraints on Jubilee during February and a delay in completing the Enyenra-10 production well at the TEN field. Both issues have now been resolved,” Tullow said on Thursday.
It had previously expected to produce between 93,000 and 101,000 bpd.
“The ~3 percent reduction in 2019 net production guidance provides a headline, but should not concern investors in our view,” Barclays said in a note.
With much focus on Tullow’s three-well drilling programme offshore Guyana, this year is also crunch time for Tullow’s East African projects.
Final investment decisions for its Ugandan project had been planned around mid-year and Kenya by the end of the year, which Tullow called “an ambitious target” on Thursday.
The shipment of a first cargo of Kenyan oil to test the market, which was originally planned in the first half as well, is expected to sail in the third quarter, Tullow said.
In Uganda, a $208 million payment after selling a stake in its onshore fields to Total in a so-called farm-down deal was delayed last year because the country asked for more tax on the deal than expected.
“These discussions are expected to conclude shortly and will enable completion of the farm-down,” Tullow said.
It has reduced its debt from $3.1 billion at the end of 2018 to $3 billion at the end of March.
It has hedged 56,000 bpd this year at a floor price of $56.40 per barrel and 31,000 bpd at $58.68 a barrel for 2020.
Latest Stories
-
Cape Coast hosts final leg of National Talent Identification Program for Para athletes
59 minutes -
ESG and Boardroom Decisions: How Non-Financial Drivers Shape Financial Outcomes
2 hours -
Robust anti-laundering fight critical for regional stability – Veep
6 hours -
Car ploughs into crowd outside LA nightclub, injuring 30
6 hours -
GNAT President calls for parliamentary legislation to protect reinstated PTAs
9 hours -
NPP Abanga blames his NDC twin brother for his misfortune
10 hours -
NPP Abanga breaks ranks to shield NDC twin brother in ‘galamsey’ accusations
10 hours -
Saminu Abdul Rasheed smashes national record again with 9.84s sprint in Georgia
11 hours -
Blekusu Coastal project: We’re reclaiming our coastlines – Housing Minister
14 hours -
Pricey plantains push Ghana’s market sellers to diversify
14 hours -
Full list: NPP delegates approve 54 reform motions, reject proposals on youth age, election supervision
14 hours -
WAFCON 2024: Cynthia made it easy – Chantelle hails goalkeeper after penalty saves
14 hours -
Cyber Security Authority boss suspended over use of military bodyguard
14 hours -
WAFCON 2024: I want to make history – Grace Asantewaa dreams of lifting the trophy
15 hours -
Afenyo-Markin accuses NDC of rebranding and claiming credit for NPP projects
15 hours