Tullow Oil sees losses shrink

Tullow Oil has narrowed its full-year losses by more than 40% to USD 597.3 million, the company said on Wednesday.

Tullow’s sales revenue, however, was down 21% year-on-year to USD 1.27 billion. The ramp-up of the Tweneboa, Enyenra, Ntomme (TEN) fields offshore Ghana boasts well for the remainder of the year, Chief Executive Adian Heavey said.

“The clear highlight of 2016 was delivering Ghana’s second major oil and gas development, the TEN fields, on time and on budget. Production from TEN, alongside our other West African oil production, has provided Tullow with positive free cash flow and enabled us to begin the important process of deleveraging our balance sheet,” Heavy said in comments on the company’s full-year results.

Tullow Oil expects the project offshore Ghana to deliver 50,000 bopd gross in 2017, with the resumption of drilling operations scheduled for 2018. The company’s other major endeavour in Ghana, the Jubilee project, is forecast to yield a net production of 36,000 bopd this year.

Tullow’s West Africa working interest oil output for 2017 is projected to come out at between 78,000 bopd and 85,000 bopd, up from 65,000 bopd achieved over 2016. It’s non-operated portfolio is projected to add 22,000 bopd this year, which represents a drop of 21%. Net output from Tullow’s European assets is expected to come out at 6,500 boepd in 2017.