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Tullow Oil upgrades production guidance on “strong performance” offshore Ghana

Tullow has lifted its forecast for 2017 to a rate of 85,000 to 89,000 barrels per day
helipad on the TEN field FPSO (floating production storage and offloading) vessel
TEN is now expected to deliver more than 50,000 bopd

Tullow Oil plc (LON:TLW) has upgraded its production guidance for 2017 thanks to what’s described as a “strong performance” at the TEN and Jubilee fields, offshore Ghana.

The oiler has lifted the bar to a rate of 85,000 to 89,000 barrels per day.

READ: Tullow Oil's Araku-1 exploration well misses mark

At Tullow’s 47% owned TEN (Tweneboa, Enyenra, Ntomme) field, the company notes that following the commissioning of floating production facilities the field is now expected to deliver more than 50,000 bopd and further development work is now slated for 2018.

Similarly, additional development work is also planned for the Greater Jubilee field next year along with remediation work for the field’s production turret although these operations may see downtime of ‘seven-to-nine weeks’.

Elsewhere in the portfolio, Tullow noted that following its farm-down of its Ugandan venture it is now expected that a final investment decision for a new field development could come in the first half of next year, and in Kenya a campaign of exploration and appraisal drilling has been successfully completed.

READ: Tullow Oil expands Côte d'Ivoire exploration footprint

It added that development planning will soon take place for the Kenya discoveries with an ‘early oil pilot scheme’ (EOPS) is due to start in early 2018.

Capital spending in 2017 is seen to have reduced, with guidance lowered to US$300mln, which in turn sees the year’s free cash flow forecast at around US$400mln. Tullow also noted that net debt had reduced to US$3.6bn by the end of October and its reserves based lending arrangements are due to complete before the end of this year.

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