Tullow Oil enjoys 47% turnover increase

A major gas exploration project in the North Sea helped Anglo-Irish group Tullow Oil to a 47% rise in turnover last year, the company said today.

The group, which has offices in London and Dublin, was transformed in 2001 by the acquisition of BP Amoco’s gas fields in the southern North Sea for £201m (€292.4m).

As a result, turnover last year leapt from £76.6m (111.4m) to £112.6m (€163.8m) as it developed the asset which now contributes 80% of revenues.

In September the group extracted the first gas from its “CMS III” exploration project – linked to a processing terminal at Bacton on the Norfolk coast.

Despite pumping £61m (€95.6m) into exploration and development, the group’s pre-tax profits in the 12 months to December 31 soared 41% to £22.5m (€32.7m).

But shares slipped 5% after the group said that its Espoir field in Ivory Coast, which began producing its first oil in February and its first gas in August, had seen lower yields than expected.

The performance was partly the result of a decision to delay bringing the main production zone in the area on stream until the second quarter of this year.

Chairman Pat Plunkett said the company was now extending existing wells and that drilling on its largest well in the area would begin this month.

Mr Plunkett, said: “This was a year of significant achievement and progress for Tullow. Two high profile development projects, in the UK and Ivory Coast, are now successfully on production.

“These projects, the ongoing exploration programmes and the acquisition opportunities currently under consideration leave the Group well positioned for 2003.”

He said the group was well placed to continue to grow both through exploration and an “attractive range of acquisition opportunities” expected this year.

Shares fell 4p to 72p.