Tullow Oil PLC - Business Update
Tullow Oil Business Update
RBL redetermination confirms debt capacity of
Further cost savings identified
"Securing the ongoing support of our RBL lending banks and confirming our debt capacity has been important given the current challenging environment. Today's positive news verifies the strength of our producing assets and robust hedging strategy which underpin the RBL and, combined with the further cost savings we have identified, confirms the strength of our liquidity in the medium-term. Nevertheless, strengthening the balance sheet continues to be a key priority with the Group seeking to raise proceeds in excess of
"Elsewhere in the business, Tullow is responding well to the challenges presented by the Coronavirus pandemic with strong controls and processes in place to allow the business to operate as close to normal as possible in spite of these difficult times."
Reserves Based Lending (RBL) facility
Tullow is pleased to confirm that it has completed the bi-annual redetermination of its RBL credit facility with
Tullow has voluntarily reduced facility commitments from
As previously announced, Tullow took actions to reduce its planned capital expenditure (capex) for 2020 by c.30% year-on-year. Following another review of planned activity, the business has identified further savings and is now targeting capex of c.
Savings have been identified primarily through the deferral of activities across the portfolio and through savings that can be realised by ongoing farm-down activities. In
While focus has been on further capex reductions, Tullow continues to invest in projects yielding good returns and the Board has agreed to progress the next phase of the Simba development in
The Group's underlying operating costs remain less than
As outlined at Tullow's Full Year Results, the impact of reduced oil prices is mitigated by the Group's robust hedging strategy. Tullow has 60% of its 2020 sales revenue hedged with a floor of c.
COVID-19 (Coronavirus) update
The health and safety of Tullow's staff continues to be the Group's top priority and Tullow continues to carefully monitor the ongoing COVID-19 pandemic. Tullow has experience of managing infectious diseases of this nature following the significant contingency planning put in place during the West African Ebola outbreak in 2014. In our principal offices, Tullow staff are currently working from home in line with Host Government guidelines with negligible disruption to the business.
Production operations in
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Notes to Editors
Tullow is a leading independent oil & gas, exploration and production group, quoted on the
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