RSS   Newsletter   Contact   Advertise with us

Tullow Oil cuts spending and West African production

Share on Twitter Share on LinkedIn
Staff 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.
Tullow Oil
Oil exploration   64,000-67,000 barrels of oil equivalent per day
Two years of weak oil prices have forced Tullow to make stringent cost cuts and scrap its dividend and the Africa-focused company also faced a technical issue at its prized Jubilee field in Ghana that forced a month-long shutdown.

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.

POST Online Media Contact