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Business News of Monday, 11 April 2016


Ghana glitch won't hit our revenues - Tullow

Tullow Oil says its revenues won't be significantly hit by a two-week delay in production at one of its core fields.

Damage to the turret bearing on the company's floating production storage and offloading (FPSO) vessel Kwame Nkrumah means it has been placed on "heading control" in the Jubilee Field in Ghana. Tullow will use tugs to minimise the vessel's movement around the bearing.

Oil production and gas exporting will continue in the field but under revised operating and off-take procedures, the company said yesterday.

"We have appointed a highly experienced project team to work on a permanent solution while our operations team continues to ensure we have in place safe and sustainable arrangements for production from the field," Tullow chief operating officer Paul McDade said.

Davy Stockbrokers analyst Caren Crowley said the Jubilee field is core to Tullow's operations, with initial guidance for the field in 2016 standing at 36,000 barrels of oil equivalent per day.

Share prices in the company closed at 196.60 pence yesterday. Tullow's fortunes have been hit by falling oil prices, which were reflected in its full-year results for 2015. The company posted a loss of $1bn (€886m) last year as revenues slid by 27pc.

Tullow has interests in over 120 exploration and production licences across 22 countries.