28th Nov 2024 09:31
(Alliance News) - Tullow Oil PLC on Thursday lowered its free cash flow outlook amid payment delays and reiterated production would be at the low-end of prior guidance.
The Africa-focused oil & gas exploration and production company expects 2024 group production of 62,000 barrels of oil equivalent per day. In the year-to-date production has averaged around this level, 62,000 boepd, in line with guidance, Tullow said.
This was consistent with comments made in August that full year production is expected to be at the lower end of the 62,000 to 68,000 boepd range, similar to 62,700 boepd recorded in 2023.
But free cash flow is expected to be USD150 to USD200 million, below previous guidance of USD200 to USD300 million due to timing of payments, namely the incremental Jubilee lifting now expected in early January 2025 and overdue gas payments from the government of Ghana.
In 2023, free cash flow was USD170 million.
Year-end net debt is expected to be around USD1.4 billion, down from USD1.61 billion in 2023.
In response, shares in Tullow Oil fell 8.2% to 20.94 pence each in London on Thursday morning.
In Ghana, Jubilee oil production averaged around 89,000 bopd to end-October, below expectations primarily due to underperformance of the J69-P well as flagged previously, unplanned downtime at the GNGC onshore gas processing plant and periods of reduced water injection due to power outages.
TEN oil production has remained consistent, averaging around 19,000 bopd to end-October, above expectations, with Enyenra and Ntomme wells responding positively to both injection and production optimisation.
A 4D seismic programme in Ghana is expected to start in January 2025, providing further data to optimise well locations for future drilling programmes, the firm added.
In addition, Tullow Oil said the outcome of the arbitration in respect of the Ghana Branch Profits Remittance Tax assessment is now expected by the end of the year.
By Jeremy Cutler, Alliance News reporter
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