Tullow Oil PLC (TLW:LN) today said that it expects a drop in earnings for the first half of the year 2016 due to a 24% fall in its daily average oil and gas output.
The FTSE 250 Company estimates that its West African oil production sector fell to 51,000 barrels per day with numbers standing at 66,500 this time last year. The company now estimates that oil production will be between 62,000 to 68,000 barrels of oil a day this year, a fall from an estimated 73,000 to 80,000 barrels in February 2016.
As a result, the company’s average selling price dropped $10 per barrel to $61.
Total revenue dropped from 37.5% to $500m as gross profit also declined by a third to $200m.
The firm announced that oil from the TEN project in Ghana which is 96% complete will be expected ‘imminently’ (next three-six weeks) The project has remained both on budget and on schedule from since it’s opening in 2013 and is forecast to produce 23,000 barrels of oil a day in 2016.
Production at its Jubilee field in Uganda however could cost the company between £100-150 million as production due to interruption in March due to technical difficulties and will now need a further 8-12 weeks during the first half of 2017 to fix. Production however from the Jubilee site stabilized a gross rate in June of 90,000 barrels per day.
30/06/2016