21st Apr 2020 12:14
(Alliance News) - Tullow Oil PLC on Tuesday said it has hired Rahul Dhir as chief executive, effective from July 1.
The exploration company added that Executive Chair Dorothy Thompson will return to her role of non-executive chair following a handover period.
Dhir is currently chief executive of Africa-focused oil & gas company Delonex Energy Ltd which he founded. He was also chief executive & managing director of Vedanta Ltd subsidiary Cairn India from 2006 until 2012.
Tullow said that with Dhir at the helm, Cairn delivered operated production of over 200,000 barrels of oil per day with operating costs of less than USD5 per barrel of oil. It added that Cairn also successfully delivered over USD5 billion of development projects including the world's longest heated pipeline at a finding and development cost of less than USD5 per barrel of oil.
Earlier in April, Tullow said it was targeting 2020 capital expenditure at USD300 million, down from it previous guidance of USD350 million. At the time, it said it has 60% of its 2020 sales revenue hedged at a floor of around USD57 per barrel for 2020 and 40% hedged for 2021 sales revenue with a USD53 per barrel floor. In January and February, its realised oil price was USD62 a barrel but after the oil price drop, it now expects hedging receipts of approximately USD30 million for March.
"I am delighted to welcome Rahul to Tullow and am very pleased that he has accepted the position of chief executive. His oil & gas, financial and African experience combined with his record of strong leadership made him the stand-out candidate for the board," Thompson said.
Tullow shares were trading 9.4% lower at 15.97 pence each on Tuesday morning in London.
By Ife Taiwo; [email protected]
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