Tullow Oil production on track as it prepares for frontier drilling campaign

Tullow Oil updated the market on its trading guidance for the half year to 30 June on Thursday, reporting that its West Africa first half 2018 oil production was expected to average 87,400 barrels of oil per day (bopd), in line with expectations.

The FTSE 250 firm said that included 11,200 bopd of production-equivalent insurance payments relating to the Jubilee field, that were expected to be realised under Tullow's Corporate Business Interruption insurance policy.

First half 2018 working interest gas production was expected to average 2,700 boepd.

That resulted in a total group oil and gas production average for the first half of 90,100 boepd.

Tullow said its 2018 full year working interest oil production forecast range had also been upgraded to 86,000-92,000 bopd.

Working interest gas production was expected to average around 3,000 boepd, adjusted to reflect a later start-up of gas sales from TEN.

Overall group production guidance for the full year was set at 89,000-95,000 boepd.

“Tullow has performed strongly so far in 2018,” said chief executive Paul McDade.

“With substantially reduced gearing and financial discipline embedded across the Group, we are now able to focus on the growth of the business.”

McDade said the company was accelerating production and cash flow growth across West Africa, continuing to make “good progress” towards sanctioning its developments in East Africa and, having refreshed the exploration portfolio, was about to embark on a multi-year frontier drilling campaign targeting high-impact prospects in Africa and South America.

“There is much to look forward to for the remainder of the year and beyond.”