Tullow Oil to reduce spend on exploration to €240m

Tullow Oil is to significantly redistribute its short-term capital spend levels away from exploration and more towards the development and production of its already proven assets.

The move – largely driven by falling oil prices and a number of disappointing new exploration results this year – will see the Irish-founded company spend ‘only’ around $300 million (€240m) on exploration and appraisal projects in 2015, compared to the near $1bn, or so, it shelled out in 2013 and the $600m-$800m earmarked for this year.

Brent crude prices have fallen by as much as 40% since mid summer and hit a four-year low, yesterday, of $81 per barrel.