Tullow oil says its 2019 total revenue is expected to be $1.7bn

Tullow oil has said its 2019 full year total revenue is expected to be $1.7 billion and gross profit also expected to be $0.7 billion.

The Capital expenditure in 2019 was $490 million expected to reduce to $350 million, the multi nation oil firm said in a statement.

“Group working interest oil production averaged 86,700 bopd in 2019 in line with expectations,” the statement said.

It added : “2019 full year total revenue is expected to be c.$1.7 billion; gross profit is expected to be c.$0.7 billion. Capital expenditure in 2019 was c.$490 million.

“Free cash flow for the full year 2019 is expected to be c.$350 million, with net debt reduced to c.$2.8 billion and gearing expected to be around 2.0 times.

“Tullow expects to report pre-tax impairments and exploration write-offs of c.$1.5 billion (c.$1.3 billion post tax) primarily due to a $10/bbl reduction in the Group’s long-term accounting oil price assumption to $65/bbl and a reduction in TEN 2P reserves.”

In 2020, the “capital expenditure is expected to be c.$350 million, with an additional c.$100 million expected to be spent on decommissioning. Tullow expects to generate underlying free cash flow of at least $150 million from 75,000 bopd at $60/bbl.

“Operations across the Group’s production assets have started the year in line with expectations and 2020 Group average production guidance remains unchanged at 70,000 to 80,000 bopd.

“In Ghana, recent activity at Jubilee includes the tie-in of the J-54 water injector well and planning for a maintenance period at the end of January to increase gas processing capacity. At TEN, the drilling of a production well on the Ntomme field has commenced and the well is expected to be tied-in by the end of the first quarter.”