Tullow Oil Cuts Deeper As Banks Agree To Amend Loan Terms

Reuters

LONDON, April 28 (Reuters) - Oil and gas producer Tullow Oil has reduced its annual capital expenditure budget by another $100 million to $1 billion and may cut spending further as it adjusts its balance sheet to weak oil prices.

The Africa-focused company also said its lenders had agreed to amend terms on its $3.5 billion Reserve Based Lending (RBL), showing banks were willing to continue to support oil companies during the market downturn.

Tullow reiterated that it would have to reduce its annual production forecast, without a material impact on cash flow, due to an ongoing technical issue that has shut its flagship Jubilee oil field in Ghana. It said the field would resume production in the coming days.

(Reporting by Karolin Schaps; editing by David Clarke)

Copyright 2016 Thomson Reuters. Click for Restrictions.

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE



Most Popular Articles

From the Career Center
Jobs that may interest you
Financial Analyst II
Expertise: Accounting|Financial Analyst
Location: Houston, TX
 
Program Manager - Manufacturing
Expertise: Marine Engineering|Mechanical Engineering|Project Management
Location: Chesapeake, VA
 
Business Development Manager
Expertise: Business Development|Sales|Structural Engineering
Location: Seattle, WA
 
search for more jobs

Brent Crude Oil : $49.24/BBL 1.12%
Light Crude Oil : $47.83/BBL 1.65%
Natural Gas : $2.959/MMBtu 0.23%
Updated in last 24 hours