Tullow outlines plans for year

Tullow Oil has a record year of drilling activity planned for 2013 — saying yesterday it anticipates drilling 49 wells and achieving annual production rates of between 86,000 and 92,000 barrels of oil equivalent per day (boepd).

The Irish-founded oil and gas exploration firm said — via its end-of-year trading update — that it is “well-positioned for a very successful 2013 and growth beyond”.

This was despite reporting a full-year production rate of 79,200 boepd for 2012 — just short of its previous 80,000-84,000 guidance range, and mainly due to the end of production at part of its North Sea asset base.

Tullow will publish its full-year financial results, for 2012, next month, but said yesterday that it generated revenues of about $2.35bn (€1.76bn); up from 2011’s total of $2.30bn. Capital expenditure amounted to $1.9bn in 2012, with net debt — at year’s end — approximately $1bn.

Next month’s results will also feature a near $219m second-half write-off, associated with unsuccessful exploration activities, new ventures activity, and licence relinquishments.

In terms of 2013 drilling work, 11 of Tullow’s planned wells will be located in Kenya and Ethiopia.

Meanwhile, following last year’s production problems at its headline Jubilee field in Ghana, Tullow has said that production is edging closer to its long-since targeted rate of 120,000 bopd.

Yesterday’s statement did not update on progress being made towards selling off non-core gas production assets in the North Sea and Asia, but reiterated that Tullow managed to increase its international presence to Mozambique, Greenland, Norway, Uruguay, and Guinea.

CEO Aidan Heavey said continuing portfolio management, along with the strengthened balance sheet and increased production in Ghana, has provided Tullow with “a strong base from which our exploration-led growth strategy can continue to deliver”.