Tullow to return record 2011 data

TULLOW Oil has said that its 2011 performance — set to show a doubling of revenues — effectively makes it one of the exploration industry’s “super-independent” players, enabling it to seek out more high-profile development partnerships.

And Royal Dutch Shell Plc is enlisting the help of expert independent explorer Tullow Oil Plc to find major new oil fields in the Atlantic in a nod to the poor record of big companies in striking gushers.

In its latest trading update — ahead of the publication of annual results on March 14 — Tullow yesterday reiterated the central message of its November update, in that its 2011 figures will be record results. It put a bit more meat on the bones by adding that total revenue will amount to around $2.3bn (€1.8bn); more than double the $1bn revenue it reported for 2010.

“Record revenues and cash flows from increased production and strong commodity prices, combined with industry-leading exploration success, underpin another very good year for Tullow in 2011,” said chief executive, Aidan Heavey.

Mr Heavey added “there is much to look forward to in the year ahead”, noting that management expects to make “significant progress” in its main geographies of Ghana and Uganda.

Tullow’s capital expenditure for 2011 amounted to around $1.4bn, with forecast spend for this year increasing to approximately $2bn. The Irish-founded oil and gas explorer’s net debt, as of the end of 2011, amounted to around $2.8bn.

For some time, Tullow Oil has been seen as one of the strongest independent exploration companies in the world. The feeling, on behalf of the company’s management, that it has strengthened its position in the mid-tier of the industry — between the giant players and the small independent companies — was supported by its secondary announcement yesterday that it has signed a partnership agreement with Shell, aimed at looking at options and developing under-explored regions in the Atlantic Ocean.

“Tullow and Shell will pursue and evaluate transformational geological plays in under-explored frontier basins,” the company said.

Group production is forecast to average between 78,000 and 86,000 barrels of oil equivalent per day (boepd), this year, with an exit rate of over 90,000 boepd expected.