Tullow Says Outlook for 2015, 2016 'Positive'
Africa-focused independent energy firm Tullow Oil said Thursday the outlook for its business during the remainder of this year and into 2016 "is very positive" and that it is on track to deliver 100,000 barrels of oil per day net production from its West Africa portfolio in 2017.
Issuing a trading statement, Tullow said that its group average working-interest production during the first quarter of 2015 was in line with expectations. Its West African production averaged 65,800 bopd while its European assets produced 9,000 barrels of oil equivalent per day. Full-year guidance remains unchanged for both regions.
Year-to-date revenue and cost of sales are "in line with expectations", and the business "remains well funded" with current net debt of approximately $3.5 billion and unutilized debt capacity and free cash of approximately $2.3 billion.
Tullow confirmed that its TEN Project offshore Ghana is now more than 55-percent complete, with all 10 of the wells that are expected to be online when the project delivers first oil having been drilled. Last weekend, the Special Chamber of the International Tribunal of the Law of the Sea (ITLOS) in Hamburg rejected Côte d'Ivoire's request that Ghana be ordered to suspend all oil exploration and exploitation in a disputed area that includes the TEN Project.
Meanwhile, Tullow said that it is progressing with its East Africa development towards the option to sanction the project by the end of 2016.
Tullow said its capital spending guidance for the full year remains at $1.9 billion, with $200 million earmarked for exploration – including potentially high-impact wells in Norway, Kenya and Suriname. The firm also expects to make cost savings of around $500 million over the next three years thanks to its Major Simplification Project.
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