Tullow Oil has posted a loss after tax of 300 million dollars for the first half of this year.
The figure represents a decrease of 270 million dollars compared to the 30 million dollars profit after tax recorded for the same period last year.
The oil company’s revenue for the first half of 2017 however went up to 788 million dollars from the 541 million dollars recorded in the same period last year.
Tullow attributed its rising loss to reduced oil price forecasts on the majority of its producing assets.
Meanwhile oil production for the first half of this year went up by 41 percent.
Even though Tullow hedged against global oil prices, the 57dollars per barrel price was down from the 61 dollars per barrel it received in 2016.
Commenting on the performance, the Executive Vice President for Tullow West Africa, Gary Thompson said he was confident of an equally strong second half especially with plans in place for stabilising the turret on the Jubilee oilfields.
“Tullow’s West African business had a strong first half of the year. With TEN currently producing in excess of 50,000 bopd from existing well stock and plans in place for stabilising the turret on the Jubilee FPSO,” he remarked.
Mr. Thompson added, “I am confident that we are well placed to have an equally strong second half. Our focus is on growing production as we put the technical issues on the Jubilee FPSO behind us, get back to drilling on TEN post-ITLOS and progress the GJFFD Plan.”
West Africa Production update
On its West Africa production, Tullow stated that its West Africa net working interest oil production, including production-equivalent insurance payments, averaged 81,400 bopd in 1st half of 2017.
Full year guidance of 78,000 to 85,000 bopd remains unchanged.
Jubilee Turret Remediation Project making good progress with costs being offset by insurance payments.
Meanwhile it says the Greater Jubilee Full Field Development Plan (GJFFD) submission to Government of Ghana on track.
Furthermore, TEN production performance is in line with expectations, preparations under way to resume drilling later in the year subject to the ITLOS decision.
By: Pius Amihere Eduku/citibusinessnews.com/Ghana