Strong Tullow ‘considering capital expenditures’

IRISH oil and gas exploration company Tullow Oil has said operational performance in the year to date has been strong, continuing last year’s trend.

Last year, the Dublin and London-based company saw pre-tax profits surge by 162% to a record level of €322.4 million.

Chief executive Aidan Heavey told shareholders at the company’s annual general meeting in London the group is “making excellent progress on all fronts”, and “is considering additional capital expenditure opportunities”.

“With further exciting high-impact opportunities still to be drilled in Ghana and Uganda this year, the outlook for 2009 remains very positive,” Mr Heavey said.

“Overall,” he said, “the group’s performance is in line with expectations.”

“Tullow has performed strongly in 2009 to date. The Jubilee development [in Ghana] is on track for first oil in the second half of next year.

“And we have maintained a 100% success rate with our drilling operations in both Ghana and Uganda, where the Tweneboa-1 and Giraffe-1 wells in particular, yielded substantial new discoveries. In addition, we have strengthened our balance sheet by securing a $2 billion (€1.46) bank facility and completing a £402m (€450m) equity placing,” Mr Heavey said.

Elsewhere, it was reported Texas-based Kosmos Energy has appointed Standard Chartered and Barclays Bank to auction its $3bn (€2.20bn) stake in the Tullow-controlled Jubilee field. Kosmos owns 30% of the African-based oil field asset.

With regard to Tullow’s non-African assets, the group said performance in Europe, particularly the UK, this year has been “marginally below expectations”; Asia – excluding India, where the company has exited – remains in line with expectations; and seismic survey work is continuing on assets in South America.