Tullow Oil, a leading oil-and-gas company, has announced that it expects to fall short of its full-year oil production target. The company attributes this setback to a scheduled delay at the Jubilee South East field in Ghana, as well as reduced water injection rates. However, Tullow Oil remains confident that it will resolve the low water injection issue by the end of the year.
Despite the challenges faced in Ghana, Tullow Oil reported that its production from the Ten fields and nonoperated portfolio met expectations. In a recent development, the company secured a $400 million debt facility deal with mining giant Glencore, which has had a positive impact on Tullow Oil’s financial outlook for the year. As a result, the company has improved its free cash flow and debt guidance, while also reducing its anticipated capital spend.
In terms of figures, Tullow Oil now expects its full-year free cash flow to be around $150 million, up from the initial estimate of $100 million. Additionally, the company has lowered its anticipated net debt to $1.6 billion, down by $100 million, and has reduced its capital spend to $370 million from the previous projection of $400 million.
Tullow Oil continues to strive for operational excellence and remains committed to delivering value to its shareholders. With plans to address the delays in Ghana and a strengthened financial position, the company is well-positioned for future success.