Tullow Oil has cut down its 2017 oil projection from Ghana’s Jubilee oilfields by 5200 barrels.
The figure has dropped from 73,700 barrels in 2016 to 68,500 barrels.
This was contained in the company’s 2016 financial statement released on Wednesday, February 8, 2017.
Tullow’s profits however dropped by eight percent between 2015 and 2016.
The figure declined from 591 million dollars to 546 million dollars between the one year period.
Consequently, the oil giant recorded a loss after tax of about 600 million dollars at the end of 2016.
Though Tullow admits that its operations in Ghana provided a positive cash flow, it has cut down its 2017 projection from Ghana’s Jubilee oilfields.
The oil giant has reduced its projection from the Jubilee oilfields from 73,700 barrels of oil per day to 68, 500 barrels of oil per day.
The review has largely been influenced by the works to be carried out on the faulty turret bearing on the FPSO Kwame Nkrumah which will lead to a twelve week shut down of the vessel, in the second half of 2017.
However the final phase of the project involving the installation of a deep water offloading buoy, is planned to be installed in the first half of 2018.
Meanwhile Tullow will not be paying dividends to shareholders.
Citing current financial constraints, the company said it is focusing on capital allocation, financial flexibility and cost reductions.
“The Board believes that Tullow and its shareholders are better served by retaining funds in the business,” the financial statement added.
Ghana’s TEN fields also produced a daily quantity of 14,600 barrels of oil.
Maritime border dispute
The maritime border dispute between Ghana and Cote d’Ivoire before the International Tribunal for the Law of the Sea (ITLOS), has also affected production at the Enyenra reservoir as no new wells can be drilled.
In addition, issues with managing pressures in the Enyenra reservoir have affected production on the TEN fields.
But Tullow anticipates that the ruling on the dispute by the ITLOS expected in the fourth quarter of 2017, to increase production which is currently estimated at 50,000 barrels of oil per day.
By: Pius Amihere Eduku/citibusinessnews.com/Ghana