Tullow Oil plans $250m investment in Ghana operations

Tullow Oil plans $250m investment in Ghana operations
Source: GNA
Date: 25-05-2019 Time: 03:05:43:pm
Andoh Awotwi, Managing Director of Tullow Ghana

Tullow Oil plans to spend $250 million in Ghana this year to expand operations with more to come in future as the company intensifies its drilling campaign.

Group Chief Executive, Paul Mcdade said the company was keen to explore further in Ghana both around its current assets and in new license via Ghana’s inaugural Licensing Bid Round.

“We are keen to grow our business in Ghana and look forward to higher production and increased resources at Jubilee and TEN and the results of the on-going Licensing Bid Round,” he said.

Mr McDade said Tullow had also adopted a new dividend policy to pay shareholders at least $100 million annually.

Tullow has resumed payment of Dividend in 2018 after a four-year break, paying $67 million as dividend to its shareholders for the year 2018.

Mr Mcdade said the decision to now pay dividend annually was because of the company’s strong financial performance despite oil price volatility.

“We suspended the dividend, but over the last few years, we have worked very hard to get the company working very well and very profitable.
And when we got to the end of 2018, we decided that we were back in very good financial health and therefore we could reinstate the dividend.”

Tullow Oil recorded revenue of $1.9 billion for 2018, while profit after tax stood at $85 million.

Meanwhile, Andoh Awotwi, Managing Director of Tullow Ghana, has been promoted to Executive Vice President of Tullow Oil plc, following a reorganisation of the Group structure.

The Tullow Ghana Business, which was formerly part of Tullow’s West Africa Business, is now a standalone business under the new Group structure, a reflection of Tullow Ghana’s importance within the Group.

Mr Awotwi is now a member of the Tullow Group Executive Team, which runs the company day-to-day and would be directly involved in all executive matters while retaining full oversight of Tullow Ghana.

This is the first time that Tullow Ghana's leader has been part of Tullow's Executive leadership.

Tullow's Chief Executive Officer, Paul McDade said, "I am delighted to welcome Kweku to Tullow's Executive Team, where he will provide a strong voice and leadership for our Ghana business.

“We will also benefit from his extensive experience across a range of industries in Africa and the US. This change also recognises Tullow Ghana'simportance to our Company's structure."

Chairman of the Tullow Ghana and Group Advisor, Africa Business, Ike Duker, said, "Kweku's appointment is very positive news and reflects a recognition of the materiality and maturity of our Ghana business, and further demonstrates the pioneering role Tullow has played in the development of Ghana's Oil and Gas industry. It also fulfils a key element of Tullow's Africanisation agenda, a journey we embarked upon about a decade ago."

Kweku Awotwi, Tullow Ghana MD and Executive Vice President, said, "I am looking forward to not only representing Tullow Ghana as part of Tullow's Executive Team but also taking part in the wider leadership and management of Tullow.”

He added, “Tullow Ghana has a bright future as we look to increase oil and gas production from Jubilee and TEN, explore for new hydrocarbons and continue to play a leading role in Ghana's fast-growing oil and gas industry."