Sections
Log in
Top News
U.S. News World News Featured Voices
Odd News
Entertainment
Movies Music TV
Sports
Soccer NFL NBA MLB NHL Golf Horse Racing Tennis Col. Football Col. Basketball
Photos
News Entertainment Sports Features Archives
More...
Defense Featured Science Health Archive Almanac
About Feedback
About Feedback
Search
Trending
Southwest Airlines
EPA
Venezuela
Doug Reinhardt
National emergency
'Walking Dead'
Monsta X
Facebook privacy
F-18 Super Hornets
Amazon
Cuba
Energy News
June 28, 2017 / 7:02 AM

Africa-focused Tullow Oil cuts spending guidance by 20 percent

CEO McDade said he's convinced the company is making the right investment decisions given current market conditions.

By
Daniel J. Graeber
Africa-focused Tullow Oil cuts spending plans, though its CEO says he's satisfied with plans given the weak market conditions. Photo courtesy of Tullow Oil.

June 28 (UPI) -- Africa-focused oil and gas explorer Tullow said it was trimming its spending plans as the company's chief executive officer focuses on financial discipline.

"Tullow continues to make good progress despite tough market conditions," CEO Paul McDade said in a statement.

Aidan Heavey in April handed over the reins of the office of the chief executive to McDade, who served as the chief operating officer since 2004.

Tullow, which has headquarters in London, is invested heavily offshore West Africa. The company said first-half production of around 81,400 barrels of oil equivalent per day was in line with its expectations. First quarter averaged 85,700 barrels of oil equivalent per day, though in February the company said its production for 2017 would likely average 78,000 barrels of oil per day at the low end, a marked increase from the previous year.

RELATED Illness prompts Tullow to reconfigure front office again

So far, the company has offered up for sale a greater stake in its operations in Uganda and worked to fix some of the production infrastructure offshore West Africa, which was hampered last year by equipment problems. At its Jubilee field off the coast of Ghana, the company said it aims to address equipment issues at a floating production vessel over the next two years, but was on pace to resubmit a field development plan by the end of July.

Remediation could take up to 12 weeks, though drilling is set to begin in 2018.

On spending, the company said it revised its guidance for the year by 20 percent to $400 million, which in part reflects lowered expenditure across the entire portfolio

RELATED Africa-focused Tullow Oil taking disciplined approach

McDade said that, since taking over in April, he's satisfied with the investment decisions so far.

"Financial discipline and efficient capital allocation will be a key focus of my tenure as CEO as we seek to deleverage the company and return to growth even at low oil prices," he said.

Crude oil prices are relatively the same as they were last year, but more than $10 less than two years ago.

Follow us on Facebook, Twitter and Instagram for more UPI news and photos.

Trending Stories

Cuba refuses U.S. cruise ship
16 states, advocacy groups sue over Trump's national emergency
16 people rescued from SeaWorld ride
Winter storm to bring snow, ice, rain to 60 percent of U.S.
Trump: Maduro supporters 'risking their lives, Venezuela's future'

Photo Gallery

 
Balloons take flight at Al-Ula Balloon Festival in Saudi Arabia

Latest News

Stored soybeans could spoil before China trade conflict ends
5 Americans arrested in Haiti during violent protests
On This Day: U.S. Marines land on Iwo Jima
Famous birthdays for Feb. 19: Roger Goodell, Millie Bobby Brown
UPI Almanac for Tuesday, Feb. 19, 2019
 
Back to Article
/
Back to top
About UPI Contact Feedback Advertisements Submit News Tips
Copyright © 2019 United Press International, Inc. All Rights Reserved.
Terms of UsePrivacy Policy