Africa helps boost Tullow Oil revenue

Kasmira Jefford
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TULLOW OIL said it expected to post record revenues of $1.05bn (£0.65bn) for the first half of the year as it ramps up output in Africa.

Higher oil prices and steady production at its Jubilee Field in Ghana will help boost the firm’s first-half revenues, the FTSE 100 oil and gas explorer said in a statement yesterday that.

The firm upgraded its full year production guidance from 86,000-92,000 barrels of oil per day to 90,000- 94,000 bopd, boosted by fresh wells in Ghana and the Netherlands.

The company is currently producing 80,000bopd, with a ramp up of the Jubilee field in Ghana to 120,000bopd expected by August.

Tullow also said it was days away from finalising a deal in Uganda with France’s Total and China’s CNOOC which will see the two new partners pay Tullow $2.9bn to develop oil reserves in East Africa.

“We expect to receive that [$2.9bn] soon. It’s just really a question now of finalising various documents but we do expect it to be in the next few weeks,” chief financial officer Ian Springett said.

Tullow’s main focus for the year continues to be Ghana and Uganda. Last month, the company announced a secondary listing in Ghana, offering locals the chance to invest in its finds.

Tullow was the FTSE’s biggest riser yesterday, closing up 3.83 per cent at 1,301p.