Tullow Oil remains on course to reach record oil production levels by the end of this year, management said yesterday.
In its latest trading update, the Irish-founded exploration firm said it continues to make “good progress” across its main areas of operations and is confident of adding 200m barrels of oil equivalent (boe) to its resources this year.
The company said that, with wells in Kenya, Mauritania, Norway, Ethiopia, and Guinea planned for the first half of 2014, “there is much to look forward to” for shareholders.
Regarding Kenya — one of the African-focused company’s largest target areas — Tullow yesterday confirmed what its partners had already recently said; that operations in its two exploration blocks in the north of the country have resumed following recent protests over jobs and benefits.
Tullow has signed a memorandum of understanding with Kenya’s government, regional governors, and community leaders to agree a long-term working deal in the area.
Regarding moves to focus solely on exploration, Tullow said the sale of its North Sea gas assets is “ongoing”, as they are now to be sold as individual assets rather than one package. Additionally, Tullow said the full sale of its non-core Asian-based assets have been agreed, with completion expected “over the coming months”.
Tullow also said it now expects to receive bids for part of its 47% stake in the $5bn (€3.7bn) Tweneboa Enyenra Ntomme oil project off the coast of Ghana later this month, adding the farm-down process “continues to make progress”.
Tullow’s stake in the TEN project — first production from which is expected in around three years — was recently valued, by Bank of America/Merrill Lynch analysts, at around $1.15bn.
Onshore Ghana, Tullow said it expects its Jubilee field to deliver an average 2013 production of around 100,000 barrels of oil a day.
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