Tullow names new CEO, cuts capex

Africa-focussed independent Tullow Oil on Wednesday said its CEO would be stepping down. The company also provided operational updates, announcing a cut in capital expenditure.

Effective April 26, CEO Aiden Heavey will move up to chairman, leaving his position after 31 years. He will be succeeded by Paul McDade, Tullow’s current chief operating officer.

The news coincided with the company’s operational updates notice, which included a reduction in capex from USD 900 million to USD 500 million. Tullow is also working towards spudding its first exploration well in the Araku prospect offshore Suriname. The well is scheduled for the second half of 2017.

Drilling is underway in Kenya’s South Lokichar Basin. The Erut-1 well is all but completed, and another three wells are planned. Tullow is mulling to extend and expand its 2017 drilling programme by another four wells.

Offshore Ghana, Jubilee turret remediation work is ongoing. “The next phase of the project will involve modifications to the turret systems for long-term spread-moored operations,” the company said, adding that it would be looking into whether a “rotation of the FPSO” would be necessary. “It is anticipated that a facility shutdown of up to 12 weeks may be required during 2017,” Tullow concluded. Jubilee production is forecast to come out at 68,500 bopd for the year.

The TEN project, which achieved first oil in August 2016, recently saw FPSO capacity testing work being completed. Output for 2017 is projected to be some 50,000 bopd, but efforts will be made throughout the year to try and raise production.