Tullow Oil said today it expects a project in Kenya to be delayed as it was forced to go back to residents.
The company said the delay was down to Kenyan authorities demanding more consultation with the local community.
It expects the consultations will be submitted in the second half of the year. It had previously hoped to get final approval in 2019, but will now wait until 2020.
The company also said that it had not yet got a tax deal in Uganda which it needs ahead of a $900m oil field stake sale to Total.
Tullow said it expects revenues to reach $900m, and gross profit of $500m in the first half of the year.
Operational problems in two Ghana fields caused output to fall, it said.
“Some production niggles in Tullow’s huge Ghanaian oil fields have dented first half numbers, but having been ironed out in pretty short order, output for the year as a whole remains on track,” said Nicholas Hyett, equity analyst at Hargreaves Lansdown.
“With cash flows expected to improve in the second half, these fields are supporting a gradual reduction in debts which we see as crucial to improving Tullow’s ability to manage a volatile oil price.”