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
-
Ghana Football Awards 2025: Abu Kassim, Boatey-Agyei and Mercy Tagoe nominated
8 minutes -
How Ghana’s tax laws help you save with your mortgage
38 minutes -
Asante Gold projects 450,000 ounces of gold from Bibiani, Chirano in 2026
42 minutes -
Stakeholders unite to protect vulnerable communities as Ghana charts new path in climate action
43 minutes -
Ghana Football Awards 2025: Mary Berko, 3 others nominated for Home-based Footballer of the Year
45 minutes -
Asantehene urges mining sector to chart new path towards sustainable development
1 hour -
Ghana Football Awards 2025: Police Ladies, Oaks Ladies and 2 others vie for Female Team of the Year
1 hour -
Fuel prices drop across Ghana as projected – ASEC
1 hour -
Wontumi’s detention: I have blocked Appiah-Kubi; I won’t talk to him again – Gary Nimako
1 hour -
Ghana Football Awards: Salah, Hakimi, Guirassy nominated for best African international
1 hour -
“Ofori-Atta sat by indolently” – Special Prosecutor slams ex-minister for withholding medical updates
2 hours -
Special Prosecutor must clearly explain why Ofori-Atta must appear in person – Martin Kpebu
2 hours -
Dr Charity Binka rallies journalists to highlight the silent epidemic of lifestyle-induced deaths
2 hours -
Akatsi South Assembly launches major sanitation drive to restore market hygiene and boost local economy
2 hours -
‘Tekyerema Pa Hackathon’ advances Ghana’s 1 Million Coders agenda with AI solutions for speech disabilities
2 hours