TIDMTLW TIDMTTM TIDMTTM
RNS Number : 5899S
Tullow Oil PLC
17 November 2021
TULLOW OIL PLC
November trading update
17 NOVEMBER 2021 - Tullow issues the following statement to
provide an update on its ongoing operations and expectations for
the full year. The information contained herein has not been
audited and may be subject to further review and amendment.
Rahul Dhir, Chief Executive Officer, Tullow Oil plc, commented
today:
"We have delivered strong operational performance across both
Jubilee and TEN this year and the Ghana drilling programme
continues to be successful. Our decision to pre-empt Kosmos
Energy's acquisition of Occidental Petroleum's interests in the
Deep Water Tano (DWT) licence underscores our belief in the value
and growth potential of our assets in Ghana. Elsewhere, the process
to find a strategic partner in Kenya is progressing well and we
have had success through selective infrastructure-led exploration
with the Wamba well in Gabon. Finally, I am pleased to have
welcomed Phuthuma Nhleko into the Tullow team as Chairman-designate
and we look forward to working with him over the coming years as we
execute our strategy and reach Net Zero by 2030."
OPERATIONAL UPDATE
Production
-- Group working interest production averaged 59,400 boepd to
end October 2021, in line with expectations.
-- Full year production guidance remains unchanged with a range of 58,000-61,000 boepd.
-- Production guidance for next year will be provided in
Tullow's Trading Statement in January 2022 after work programmes
and budgets are agreed with Joint Venture (JV) Partners across
Tullow's portfolio.
Ghana
-- Ghana drilling campaign on track, with three of the four
wells planned in 2021 now onstream.
-- Significant improvement in operating performance sustained:
combined uptime on both FPSOs is averaging c.97%; gas offtake from
the Government of Ghana is averaging c.110 mmscfd; water injection
rates on Jubilee are in excess of 200 kbwpd.
-- Tullow has exercised its right of pre-emption related to the
sale of Occidental Petroleum's interests in the Jubilee and TEN
fields in Ghana to Kosmos Energy. As a result, Tullow's equity
interests are expected to increase to 38.9% in the Jubilee field
and 54.8% in the TEN fields. Completion of the transaction remains
subject to finalising definitive agreements with Kosmos
Energy/Anadarko WCTP Company and gaining approval from the
Government of Ghana. (See release).
Jubilee
-- Jubilee is currently producing c.28,700 bopd net to Tullow (gross c.81,000 bopd).
-- Two new wells have been brought onstream this year (producer
J56-P in July and water injector J55-WI in September). A third
Jubilee well (producer J57-P) is due onstream in December 2021,
ahead of schedule, and is expected to increase gross production
from the Jubilee field to over 85,000 bopd.
-- The Jubilee FPSO maintenance shutdown originally scheduled
for September 2021 is now forecast to take place in April 2022. The
shift allows the work scope to be optimised and gas enhancement
works previously planned for a 2023 shutdown to be accelerated. An
expected easing in COVID-19 restrictions should support a more
efficient work programme.
TEN
-- TEN is currently producing c.13,200 bopd net to Tullow (gross c.28,000 bopd).
-- A gas injector (Nt06-GI) came onstream in October 2021 and is
providing pressure support to existing Ntomme wells. Nt06-GI also
encountered oil at the base of the well, de-risking the development
potential of areas further to the north of Ntomme.
Non-operated
-- Production guidance for the non-operated portfolio is
c.17,000 bopd net to Tullow for the full year, in line with
expectations.
-- In Gabon, the Simba expansion project has made good progress
with a successful infill well brought onstream in September 2021. A
new 10-inch pipeline, which will allow increased offtake from the
field, is expected to be operational in December 2021.
-- In Côte d'Ivoire, the Espoir field is now back in production
following an extended shutdown. Tullow continues to work with the
Operator (CNR) to help prepare a remediation plan for the FPSO.
Kenya
-- Following the submission of a draft Field Development Plan
(FDP) to the Government over the summer, Tullow and its JV Partners
have been working collaboratively with the Ministry of Petroleum
& Mining to incorporate feedback and plan to submit a final FDP
by the end of 2021 in line with licence commitments.
-- As previously announced, the JV Partners are actively seeking
a strategic partner for the project and constructive discussions
continue with interested parties.
Exploration
-- In Gabon, selective infrastructure-led exploration has led to
the Wamba discovery which is adjacent to the non-operated Tchatamba
South oil field. The discovery has the potential to deliver oil
production from mid-2022, subject to capital allocation and budget
decisions.
-- In the emerging basins of Guyana and Argentina the focus
remains on unlocking value from the substantial prospective
resource base whilst seeking to reduce the Group's capital
exposure.
-- In Guyana, the Kanuku JV Partners plan to drill the
Beebei-Potaro commitment well in mid-2022, targeting in excess of
200 mmbbls gross mean unrisked prospective resources across two
targets.
-- Following the GVN-1 well result, the JV Partners have
notified the Government of Suriname that they have elected not to
enter into the next phase of Block 47, and Tullow will exit this
licence on 31 December 2021. Tullow has also decided to exit Block
54 at year end.
FINANCIAL Update
-- Full year Group capital expenditure is expected to be c.$265
million (previously c.$260 million), adjusted to take account of
revised Kenya expenditure.
-- Full year underlying operating cashflow(1) is expected to be
c.$600 million, and free cash flow is forecast to be c.$100
million, subject to year-end working capital movements, and
excluding any consideration received in respect of Uganda.
-- Tullow is set to receive $75 million from Total following a
Final Investment Decision (FID) for the Lake Albert Development in
Uganda. Whilst Tullow understands that both CNOOC and Total have
now taken FID, it is uncertain whether the final parliamentary
approval will be received before year end. Therefore, this payment
may occur in early 2022.
Hedge portfolio as of 2021 2022 2023 2024
16 November
========================== ======== ======== ======== ========
Hedged volume (bopd) 40,000 39,254 30,588 10,446
========================== ======== ======== ======== ========
Weighted average floor $48/bbl $51/bbl $55/bbl $55/bbl
protected ($/bbl)
========================== ======== ======== ======== ========
Weighted average sold $67/bbl $77/bbl $74/bbl $74/bbl
call
========================== ======== ======== ======== ========
Premium spend per barrel
($/bbl) ($2.6) ($2.0) ($2.0) ($2.0)
========================== ======== ======== ======== ========
BOARD UPDATE
On 25 October, Phuthuma Nhleko joined the Board as a
non-executive Director and Chairman-designate of Tullow. Phuthuma
will take over as Chair of Tullow from Dorothy Thompson, CBE, at
the end of December 2021, at which point Dorothy will retire from
the Board.
---------------------------
CONTACTS
============================================= ===================
Tullow Oil plc Murrays
(London) (Dublin)
(+44 20 3249 9000) (+353 1 498 0300)
George Cazenove (Media) Pat Walsh
Nicola Rogers and Matthew Evans (Investors) Joe Heron
============================================= ===================
Notes to editors
Tullow is an independent oil & gas, exploration and
production group, quoted on the London, Irish and Ghanaian stock
exchanges (symbol: TLW). The Group has interests in over 40
exploration and production licences across 11 countries. In March
2021, Tullow committed to becoming Net Zero on its Scope 1 and 2
emissions by 2030.
Follow Tullow on:
Twitter: www.twitter.com/TullowOilplc
YouTube: www.youtube.com/TullowOilplc
Facebook: www.facebook.com/TullowOilplc
LinkedIn: www.linkedin.com/company/Tullow-Oil
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTUNVNRAUUAAAA
(END) Dow Jones Newswires
November 17, 2021 02:00 ET (07:00 GMT)
Tullow Oil (LSE:TLW)
Historical Stock Chart
From Mar 2024 to Apr 2024
Tullow Oil (LSE:TLW)
Historical Stock Chart
From Apr 2023 to Apr 2024
