Oil and Gas: Oil field not meeting expectations for Tullow

Ghana oil field not meeting expectations for Tullow

Exploration: Workers on a Tullow Oil floating production, storage and offloading vessel

Tullow Oil has said its Ghana production has “not met our expectations” this year and it is working closely with its joint venture partners to ensure that both fields perform to their potential.

Since 2006 Tullow has had interests in two exploration licences offshore Ghana.

In a trading update covering the period from the end of July to today Tullow said its full year West Africa net oil production from Ghana and non-operated portfolio is forecast to average around 87,000 barrels of oil per day.

This is slightly below guidance primarily due to Ghana production performance, where some of its work was suspended in July.

Elsewhere, Tullow said recent analysis of its two oil discoveries in Guyana at Jethro and Joe has shown that at these locations it has encountered heavy oil.

The group said its full year capital expenditure forecast is circa $540m, while free cash flow is predicted to be around $350m.

Tullow will have full year net debt of around $2.8bn.

In Uganda, the company’s farm-down has lapsed, however Tullow said it and its joint venture partners “remain committed” to the Lake Albert Development.