Tullow Joins Forces With Shell On Atlantic Exploration
18 January 2012 - 6:52PM
Dow Jones News
Exploration firm Tullow Oil PLC (TLW.LN) said Wednesday it will
team up with energy giant Royal Dutch Shell PLC (RDSA) to jointly
explore for oil and gas at select frontier sites in and around the
Atlantic Ocean.
Tullow said the two firms had signed a non-binding memorandum of
understanding to look for the kind of risky oil finds that have
become its hallmark and have helped transform it from a
little-known prospector into one of the fastest growing energy
firms in Europe.
"This partnership combines the knowledge base and specialist
capabilities of both companies," Tullow said in a statement
accompanying its full-year trading and operational update.
The company also said it is close to reaching a final agreement
with the Ugandan government to complete its long-awaited deal to
sell two-thirds of its interests in the East African country to
Total SA (TOT) and Cnooc Ltd. (CEO). Last month, Uganda's junior
energy and minerals minister said the government could approve the
sale by the end of January.
"Almost all outstanding issues have now been dealt with," said
Tullow.
Separately, Tullow said it expected to post record full-year
earnings March 14. The company expects its sales to have doubled in
2011, to $2.3 billion, as its continued exploration success helped
it reap the benefit of higher oil prices.
With the company set to embark on an ambitious drilling program
at sites across the world, 2011 capital expenditure is expected to
have increased 43% to $2 billion, from $1.4 billion last year, a
figure at the top end of analyst expectations.
Tullow shares closed up 1.8% Tuesday at 1455 pence. Its stock is
5% higher than at the same point last year.
-By Alexis Flynn, Dow Jones Newswires; +44 207842 9471,
alexis.flynn@dowjones.com
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