Tullow suspends work off Guinea

Tullow Oil suspended work at a project off Guinea as its partner at the site is investigated.

A US probe into Hyperdynamics Corp means Tullow, which had planned to start drilling a deepwater well by April 1, is unable to meet its contractual obligations.

The company “cannot proceed with its activities on the license until these issues are resolved,” spokesman George Cazenove said yesterday.

Hyperdynamics plummeted as much as 79% in New York trading. It was the biggest intra-day slump since 1998 and led to a brief halt in trading.

The US Department of Justice and the US Securities and Exchange Commission are probing Houston-based Hyperdynamics over the acquisition and retention of exploration rights in Guinea. Since last year, the US has been examining how iron-mining rights were awarded in the West African nation’s Simandou area.

Tullow, the operator of the oil and gas project, joined the concession in 2012 by acquiring 40% from Hyperdynamics, which now has 37%.

“Tullow hopes for a speedy resolution of these issues and looks forward to continuing operations,” Cazenove said yesterday. Korea National Oil Corp’s Dana Petroleum unit also is a partner in the venture.