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Tullow Oil Plc sticks with full year production guidance as management cheers “strong” Ghana performance

Chief executive Rahul Dhir described a strong operational performance, in Ghana, and said a recent drill programme was a success

Tullow Oil PLC (LSE:TLW) said production to the end of October was in line with expectations as it maintained guidance for the full year.

The African-focused producer said volumes averaged 59,400 barrels oil equivalent per day and full year guidance remained unchanged with a range of 58,000 to 61,000 boepd.

Full year underlying operating cashflow is expected to be around $600 million with free cash flow forecast at US$100mln.  

Tullow expects to receive $75 million from Total following a Final Investment Decision (FID) for the Lake Albert Development in Uganda but added it is uncertain whether the final parliamentary approval will be received before year end. Therefore, this payment may occur in early 2022.  

The oil firm said 2021 capital expenditure is presently expected to total US$265mln, up from US$260mln due to extra spend in Kenya where it is working with partners to deliver a field development plan in the current quarter.

Referring to Ghana, the drilling campaign is on track, with three of the four wells planned in 2021 now onstream. Production at the Jubilee field amounted to 28,700 boepd net to Tullow (81,000 gross). A planned maintenance shut-down previously slated for September is now anticipated in April, it added.

Chief executive Rahul Dhir described a strong operational performance, in Ghana, and said the recent drill programme was a success.

“Our decision to pre-empt Kosmos Energy’s acquisition of Occidental Petroleum’s interests in the Deep Water Tano (DWT) licence underscores our belief in the value and growth potential of our assets in Ghana,” Dhir added.

“Elsewhere, the process to find a strategic partner in Kenya is progressing well and we have had success through selective infrastructure-led exploration with the Wamba well in Gabon.”

In London, Tullow shares were largely flat, changing hands at 47.78p in Wednesday’s early deals.

Read More: Tullow Oil Plc sticks with full year production guidance as management cheers “strong” Ghana performance

2021-11-17 03:13:00

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