Tullow Oil drops as Jubilee Field gas exports suspended

Tullow Oil was under pressure after saying gas exports from the Jubilee Field to the Ghana Gas plant at Atuabo have been suspended since 3 July due to technical issues and are expected to resume mid-August.

FTSE 250

20,508.75

15:45 15/11/24

n/a

FTSE 350

4,453.56

15:45 15/11/24

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FTSE All-Share

4,411.85

15:45 15/11/24

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Oil & Gas Producers

8,043.72

15:45 15/11/24

1.32%

105.17

Tullow Oil

22.10p

15:39 15/11/24

1.94%

0.42p

Oil production is currently constrained to approximately 65,000 barrels of oil equivalent per day and is under constant review but there is no effect on the field's reservoir or resources, the company said.

Tullow said it has mobilised a team of experts to rectify the fault within the gas compression system and estimates that it will take approximately a further three weeks to reinstate gas export and full oil production.

The company will review its 2015 production forecast for Jubilee and provide an update on progress at its half-yearly results on 29 July.

Atif Latif, director of trading at Guardian Stockbrokers, said that while the news is disappointing, he still sees value in Tullow as a standalone sector play.

“We do not expect there to be any material estimate changes and continue to see the upside risk as significant,” he said.

At 11:44, shares were down 3.6% at 271.60p.