Audio By Carbonatix
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
-
CHRAJ, PTI train MPs on strengthening human rights oversight
6 minutes -
Ghana processes less than 6% of cashew output as farmers face price plunge
40 minutes -
Cocoa Bill needed before September season to back reforms – Dr Jasaw
60 minutes -
DVLA to pilot new electronic number plate system this month ahead of 2027 rollout
1 hour -
DVLA to tie vehicle registration numbers to owners under new system
1 hour -
Ghana has made significant progress in strengthening rules governing entry and exit – Prof Prempeh
1 hour -
Africa’s next struggle is economic emancipation, not political independence – Mahama
1 hour -
Anchor your profession on trust – Sports Minister tells PR practitioners
1 hour -
Ghana Gas’ 2025 performance strengthens government’s Gas-to-Power agenda – Energy Minister
1 hour -
Government should have shared its position with Constitution Review Committee – Prof Prempeh
1 hour -
Technology is the new language of global cooperation – Diplomatic Affairs Media CEO
1 hour -
GARID project delaying rehabilitation of Kaneshie footbridges – AMA Mayor
1 hour -
John Boadu pledges support to make Bawumia Ghana’s next President
1 hour -
Mahama, Jamaican leaders hold bilateral talks to deepen Ghana-Jamaica ties
2 hours -
Community media key to Ghana’s cyber resilience – Deputy Communications Minister
2 hours