Tullow Raises 2019 Oil Output Forecast

Tullow Oil has raised its production outlook for Ghana in 2019 to 180,000 barrels of oil a day.

This forecast is based on plans to drill and complete new wells across the TEN and Jubilee fields allowing gross oil production from Ghana to rise.

JUBILEE

Gross production from Jubilee in 2018 averaged 78,000 barrels a day, slightly below the group's forecast. Tullow blames this on some operational issues in December which it said has been resolved.

Tullow expects average gross oil production from the Jubilee Field to increase to around 96,000 barrels a day.

TEN

The TEN fields performed well in 2018 as expected with gross production averaging 64,500 barrels of oil a day.

Tullow is projecting production from the field in 2019 to step up significantly to around 83,000 barrels a day.

"Tullow is well-placed to deliver on its growth ambitions. In 2019, we will increase oil production in West Africa, target Final Investment Decisions in East Africa and drill the first wells in an exciting exploration campaign in Guyana", CEO Paul McDade said.

East Africa

In Kenya, Tullow says it continues to target FID in late 2019 and First Oil in 2022. This is after substantial progress made in 2018.

Negotiation is still ongoing in Uganda between the oil giant, its partners in Uganda, Total and CNOOC Ltd and Government of Uganda on the farm-down which is now expected to be completed in the first half of 2019.

New ventures

In 2018, Tullow acquired new licences in Côte d'Ivoire, Suriname, Comoros and Peru, the latter two are subject to Government approval. Tullow in 2019 will undertake geophysical surveys in Côte d'Ivoire, Comoros and around its current assets in West Africa.

It has also indicated Guyana drilling will commence in mid-2019 with three wells planned to test this high potential acreage.

S&P Global

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