Tullow revenues rise to $1.15bn

Tullow Oil has reported record half-year revenues of $1.15bn (€915.6m), a rise of nearly 8.5% on the same period last year.

In a brief trading and operational update covering the first six months of 2012, the Irish-founded oil and gas exploration company said the proceeds from the farm-down of its assets in Uganda have “transformed” its balance sheet.

The company said it was “well-placed” for continued success over the remainder of the year.

The Ugandan deal — which saw Tullow farm out two thirds of its assets to international partners, Total and CNOOC — brought in a pre-tax profit of around $700m.

Tullow said its first-half expenditure amounted to $900m, with total expenditure for this year still expected to come in at around the $2bn mark. Net debt as of the end of June amounted to approximately $700m.

At the halfway stage in 2011, Tullow had recorded revenues of $1.06bn, itself up by a whopping 119% on the previous year’s first half.

The company’s full-year figures for 2011 showed a staggering 111% increase in revenue — from $1.09bn to just over $2.3bn — while pre-tax profit jumped from $179m to $1.07bn.

Tullow’s full first-half results for 2012 are due to be published towards the end of this month.

Chief executive Aidan Heavey yesterday said that exploration success had continued during the first half of the year, with the recent major discovery in Kenya being the fourth new basin Tullow has opened in the past five years.

“We’ve also completed the $2.9bn farm-down in Uganda and made good progress on our development projects in Ghana and Uganda,” Mr Heavey said.

“The ongoing remediation of the Jubilee Field is progressing well and significant exploration wells are planned for the East African rift basins, the West African transform margin, and the twin basins in South America in the second half of 2012.”

“With an exciting programme ahead, Tullow is well-placed for continued success over the remainder of the year,” Mr Heavey added.