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The oil and gas producer in Africa, Tullow Oil, has further reduced its production forecast for a full fiscal year following repeated delays in putting a well off the coast of Ghana online, forcing it to suspend its plan of completion.
The London-listed group revised its oil production outlook for the entire year to 89,000-93,000 barrels of oil a day, after "mechanical problems" put the oil well online. offshore deposit of RTE.
It was previously 90,000 to 98,000 bpd for the year, which had already been reduced from the January forecast of 93,000-101,000 bpd. Shares fell 2% after opening.
"We are disappointed that a mechanical problem encountered in our last RTE well led us to reduce our production prospects for 2019," said Paul McDade, Tullow's General Manager. "However, our overall low-cost production portfolio in West Africa continues to provide a solid financial base for the company, which allows the Group to invest for its future growth, reduce its debt and pay for itself." dividends to shareholders "
Tullow was one of the companies hardest hit by the oil price crisis in 2014 and accumulated significant levels of debt by engaging in capital-intensive projects before the slow-down. But after a painful restructuring, the company resumed paying dividends this year after posting its first net profit in five years.
Tullow reported revenues of $ 872 million for the first six months of 2019, down slightly from $ 905 million in the same period last year and below its previous forecast of $ 900 million. The gross margin, however, was $ 527 million, up from $ 521 million a year ago and its $ 500 million outlook.
Tullow also said on Wednesday that he "was considering all options" in pursuing the sale of his interests in Uganda after making "limited progress" in discussions with the government. The project has been at the center of a tax dispute with the Ugandan authorities since Tullow signed a $ 900 million contract in 2017 to sell a stake in the project to Total and Cnooc, a Chinese company.
Daily Bulletin
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