LONDON, Oct. 28 (UPI) -- With repair operations completed at one of West Africa's largest oil fields, Tullow Oil said it was in a position to start generating cash.
The company said Friday it secured $345 million from lenders to help cover some of its debt, support it said would clear up some space for refinancing by next year.
"We are generating free cash flow and starting to deleverage our balance sheet," Chief Financial Officer Ian Springett said in a statement.
For its Jubilee oil field, operations were restricted last year by technical issues at a gas compression system and the company in early April said part of the so-called Kwame Nkrumah floating production storage and offloading facility positioned off the Ghanaian coast was damaged and no longer functioning as designed.
The company, which has offices in London, said late September its insurance covered the loss of production and claims regarding the interruption of business offshore Ghana. Three years ago, Tullow started development of the separate Tweneboa Enyenra Ntomme, or TEN field, off the coast of Ghana.
The company was forecasting a 2016 average production rate at Jubilee at around 101,000 barrels of oil equivalent per day. Production from TEN is expected to peak at about 80,000 barrels of oil per day.
"Overall, Tullow's capital commitments have reduced substantially following the completion of the TEN project," the company said in a statement. "During the fourth quarter, the group will be generating free cash flow from its producing assets and can start paying down its debt."
The company recorded a $30 million profit for the first half of 2016, following a loss last year of $68 million, noting pressure from lower crude oil prices and reduced output from its Jubilee oil field were offset by lower costs elsewhere in its portfolio.