Wednesday 12 November 2014 9:22 pm

Tullow switches focus to combat falling oil prices

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LONDON-listed Tullow Oil announced yesterday that it is changing its focus to concentrate on its African assets in response to declining oil prices.

The company said that given the current expectations for the oil price and reduced commercial success from offshore drilling, returns from drilling complex, deepwater wells are currently less attractive and so it is to focus on its East African operations where “significant value can be created”.

In particular, the firm is planning to make progress on its developments in Uganda and Kenya.

Meanwhile, the group’s core oil assets in West Africa are to receive the greatest share of capital expenditure in 2015.

Tullow added that it will continue to seek low cost exploration sites in the Atlantic as well as in Africa.

The firm reported that its financial performance for year to date had been in line with expectations.

Aidan Heavey, Tullow chief executive, said: “Tullow remains exploration-led and will continue to add further high quality frontier acreage so that, as conditions allow, we can return to drilling the types of prospects that have given us the development portfolio we have today.”

Tullow’s shares went up by over two per cent yesterday.