Irish-founded crude exploration group Tullow Oil has reiterated its guidance for the year, with production at 62,000 barrels of oil equivalent per day.
Year-end net debt is expected to be about $1.4 billion (€1.3 billion), with free cash flow of $150-200 million, below previous guidance of $200-300 million, it said in a trading update on Thursday.
That was attributed to the timing of payments, with the incremental Jubilee oilfield lifting expected early next year, along with overdue gas payments from the government of Ghana.
The company’s revolving credit facility has been extended to the end of June 2025, providing a $250 million facility it previously said was a key step in refinancing plans.
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In Ghana, the Jubilee oilfield came in under expectations, averaging 89 kbopd (barrels of oil equivalent per day) to the end of October. That was due to the underperformance of the J69-P well, unplanned downtime at the GNGC onshore gas processing plant, and reduced water injection due to power outages.
Tullow said water injection capacity has been increased to around 300 barrels of water per day, with further production optimisation activities expected to lessen the declines experienced in the second half of 2024.
Looking ahead, a 4D seismic programme in Ghana should start in January 2025, providing data that can optimise well locations for future drilling.
In Gabon and Côte d’Ivoire, Tullow said non-operated production is in line with expectations, on track to average about 10.5 kbopd net in 2024. The Simba field was brought back on stream in August, and a discovery was made on the Sarafina infrastructure-led exploration well.
Tullow also said its decommissioning in the Banda/Tiof fields in Mauritania completed ahead of schedule and below budget during the year.
Capital expenditure and decommissioning spend guidance has been kept at $230 million and $70 million, respectively.
“Our cash generative business enables us to continue our deleveraging progress. This has been achieved despite underperformance at the Jubilee field, which has been offset in part by strong performance at TEN, lower capital intensity and a continued focus on cost management,” said Rahul Dhir, Tullow’s chief executive.
“We are well positioned to optimise our capital structure and look forward to progressing plans to address our remaining debt maturities.”
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