Audio By Carbonatix
The recent challenges with crude production at the Jubilee fields and declining oil prices has affected the half year financial results of Tullow.
Results covering its operations up to June this year saw a significant decline in revenue and other areas.
The challenge resulted in revenue going down by about, 34 percent to $542 million while profit before tax, went down, by more than 300 percent to $24 million.
Sales volumes also saw a significant decline to a little over 50,000 barrels a day. The development has affected the earnings on every share held by an investor.
The half-year results also show that Ghana still accounts for a larger chunk of its spending, as the company has set aside, $700 million dollars for capital expenditure.
But there appears to be light at the end of the tunnel for Tullow when it comes to its financial performance.
Group Chief Executive, Aiden Heavy has confirmed to Joy News that, Commercial production of crude oil from country's second biggest oil field, apart from the Jubilee, that is Tweneaboa Enyenra and Ntomme (TEN) field will start early August.
This confirms an earlier report by Joy Business that production is expected to start from the second week of August.
Mr Heavy is optimistic, starting production at TEN could greatly improve its fortunes.
Chief Executive of Tullow Oil, Ghana Charles Darku, tells Joy Business they have learnt lessons from the Jubilee as they work to start production from TEN, especially when it comes to the FPSO.
"A whole lot of lesson learnt that were taken from Jubilee Fields was taken into FPSO Atta Mills. Indeed industry experience was also brought to bear because the owner of the FPSO has various other FPSOs. So we expect and quite confident that from a design and operational perspective, we should we should see a better output," he said.
However, he acknowledged that it is a plant which can always break down but they remain confident.
A pick up in Tullow Oil fortunes could impact positively on revenue and taxes for the state, good returns for shareholders in Ghana, and even employment opportunities for indigenes.
Latest Stories
-
We remain committed to maintaining fiscal discipline to fast track BoG’s recovery – Seth Terkper
9 minutes -
The Brotherhood: Panel exposes major red flags in male friendships
34 minutes -
The Cost of Stabilising Ghana: Why the Bank of Ghana’s 2025 losses may be the price of macroeconomic recovery
37 minutes -
Gold Fields, Ghana FA sign $5 million two-year sponsorship deal
37 minutes -
From Blogging to Production: The growth of Alexander Fifi Abaka in Ghana’s media space
38 minutes -
Abdul Rasheed Saminu, Azamati lead Ghana squad for African Athletics Championships
50 minutes -
An encounter with Nana Addo brought me back to Ghana – Dr Osei Adutwum reveals
55 minutes -
US jet fuel could be used in Europe to ease possible shortages
1 hour -
We cannot change vehicle ownership records without legal authority – DVLA
1 hour -
Dr Agyemang rejects Health Committee Chairman’s ‘resign’ comment, calls it unfortunate
1 hour -
‘No bed syndrome’: GMA calls for National Emergency Healthcare Policy
1 hour -
“Telling tired health workers to resign isn’t the solution”
1 hour -
Ghana Meteo sends urgent alert over thunderstorm heading from Togo, Benin
1 hour -
How my daughter’s father infected her with HIV – Woman breaks down
1 hour -
Health Ministry targets 30% reduction in maternal deaths within two years
2 hours