Tullow Oil has issued a Trading Update for the period 24 July to 13 November 2019.
PAUL MCDADE, CHIEF EXECUTIVE OFFICER, TULLOW OIL, COMMENTED:
'Tullow expects to deliver robust free cash flow for the full year. This has been supported by our continued disciplined capital investment and underlines our commitment to further reduce our debt and pay returns to shareholders. Since the Group's last update, Tullow announced two oil discoveries in Guyana at Jethro and Joe, and recent analysis has shown that at these locations we have encountered heavy oil. We remain confident in the broader light oil potential of the Orinduik and Kanuku blocks located in this prolific oil basin. The first ever cargo of East African oil from Mombasa in August was an important milestone for Project Oil Kenya and we continue to make good progress with FID targeted in the second half of 2020. In West Africa, our non-operated assets continue to perform well. However, Ghana production has not met our expectations this year and we are working closely with our Joint Venture Partners to ensure that both fields perform to their potential.'
TRADING UPDATE SUMMARY
- Full year 2019 West Africa net oil production from Ghana and non-operated portfolio forecast to average c.87,000 bopd
- Full year capex forecast of c.$540 million, free cash flow forecast of c.$350 million, full year net debt of c.$2.8 billion
- Uganda farm-down lapsed; Tullow and Joint Venture Partners remain committed to the Lake Albert Development
- Kenya exports East Africa’s first cargo of 240,000 barrels of oil from Mombasa
- Good progress on Project Oil Kenya; targeting Final Investment Decision (FID) late 2020
- Guyana exploration programme delivers two Tertiary oil discoveries; Carapa well underway targeting Cretaceous play
- 3D seismic survey completed in the Comoros; preparations underway for exploration well in Peru in the first quarter of 2020
Source: Tullow Oil