Tullow Oil cuts spending and West African productionStaff Writer | November 10, 2016
Tullow Oil lowered its spending in the face of low oil prices and cut production targets due to the slower than expected increase in output from its new TEN oil fields offshore Ghana.
Oil exploration 64,000-67,000 barrels of oil equivalent per day
The company said efforts to repair a broken turret at the field remained on track to be completed next year and would result in another shut down of up to 12 weeks though insurance cover would offset lost production.
Tullow said it had cut its 2016 capital expenditure budget to $900 million from $1 billion and expected 2017 spending to be in the $300 million to $500 million range.
The company said it expected net output to be 64,000-67,000 barrels of oil equivalent per day (boepd) for the year in West Africa compared with its June forecast of 62,000-68,000 boepd due to the slower increase in production from TEN fields since its first oil started to flow in August. ■