Tullow Oil decreased its 2019 production projection for the second time in three months as technical glitches in Ghana continued to cast a shadow.
The full-year output is now seen at 89,000 to 93,000 bpd, reflecting delays in well completion on the African country’s TEN venture, Tullow stated Wednesday. It’s a further setback for a company that depends on the continent for more than 90% of its revenue.
“The main issue is down to these last couple of wells at Enyenra, which have been quite complex from a completion point of view,” Chief Executive Officer Paul McDade mentioned in a cellphone interview. “We’re a bit dissatisfied this year because of these wells. However, we’ve received many wells to contribute subsequent year.”
The issues include mechanical issues in completing the Enyenra-14 production nicely, which has not been introduced on stream as deliberate and is currently suspended as the corporate continues a drilling program began last year. The troubles in Ghana triggered an earlier guidance downgrade in April when Tullow lower its 2019 forecast to as little as 90,000 bpd from as a lot as 101,000 bpd.
The shares dropped as a lot as 2.8% to 202.4 pence in London on Wednesday and traded at 203 pence as of 9:49 a.m. local time.
In East Africa, Tullow has additionally faced obstacles in getting several projects off the bottom. A final investment decision in Kenya isn’t expected until the second half of 2020, a deadline McDade mentioned is “sensible and achievable.”
Financial results have strengthened, with first-half net income leaping about 90% from a year earlier to $103 million, on the income of $872 million. Oil production averaged 88,700 bpd within the period.