Tullow Oil PLC (LSE:TLW) told investors it has delivered on its operating and financial targets in the first 10 months of 2022, as it narrowed guidance for the full year to between 61,000 and 62,000 barrels of oil per day (from 60,000 to 64,000).
“Our producing assets continue to perform well, in line with expectations,” chief executive Rahul Dhir said in a statement.
“We continue to strengthen our balance sheet, with free cash flow guidance for 2022 increased to US$250mln and gearing on track to be less than 1.5 times by the end of the year."
Deferral of certain work programmes see capex and decommission spend reduce to US$360mln and US$80mln for the year, the company noted.
Around half of Tullow’s output comes from the Jubilee field, offshore Ghana, and the company said it intends to add two new production wells at the project before the end of 2022 before a further two are drilled in early 2023 – with all four expected online by the end of H1 2023.
A new well at the TEN field, also offshore Ghana, was brought onstream in 2022 though the results disappointed and the production data continues to be evaluated to optimise future plans.
In Kenya, the company is currently seeking an extension for the review of a field development plan as it seeks to bring in an additional strategic partner.
Some 17,000 boepd of production comes from Tullow’s non-operated portfolio, which is impacted presently by planned downtime for a floating production vessel at the Espoir field, offshore Côte d'Ivoire, for remediation work.