Tullow Oil Share Discussion Threads

[the canadian mounted] 14/3/2020 09:09

😆😆😆 doom and gloomsters out early today!

[maywillow] 14/3/2020 09:09

Tullow Oil insists Kenya project still commercially viable
Mar 13, 2020

For Tullow Oil, the year 2020 has not started particularly well with collapsing hopes, poor oil output and boardroom maneuvers almost pushing the British oil firm into oblivion. In the peak of the storm, the company lost half its value on the stock market after bad fairing in Ghana and Guyana and a delay in the sale of the Ugandan stake. This led to global readjustment with the Kenyan operations announcing job cuts.

This is a situation well explained by Dorothy Thompson, Executive Chair, Tullow Oil plc. “This has been an intense period for Tullow as we have worked hard on a thorough review of the business which has led to clear conclusions and decisive actions. We are focused on delivering reliable production, lowering our cost base and managing our portfolio to reduce our debt and strengthen our balance sheet. Even with recent events in oil markets, Tullow’s assets remain robust: we are a low-cost African oil producer, with a strong hedging position, substantial reserves that underpin our business and a high potential exploration portfolio.”

However, despite all the challenges, the oil explorer and miner is not throwing in the towel, especially on Project Kenya. In its 2019 final results, the oil company which is quoted on the London, Irish and Ghanaian stock exchanges noted that the Kenyan project was on course and has shown its viability backed by independent studies.

“The annual results show that there is enough oil in Kenya and the business fundamentals remain intact with recent independent reserves audits demonstrating that Kenya has a substantial underlying reserves and resources base in East Africa. Throughout 2019, over 95% of the Tullow’s reserves and resources have been independently audited, and the results underpin the quality of the asset base,” Tullow noted.

The Tullow Group working interest production averaged 86,800 boepd with a capital investment of $490 million. In the same period, Tullow Oil recorded a loss after tax of $1,694 million occasioned by exploration write-offs in its operations in Uganda.

Last year, a $900 million (£740m) deal, under which Tullow Oil was to sell a major stake in its Ugandan projects to Total and CNOOC, collapsed as a result of wrangling with the government. Under the Sale Purchase Agreement, Total planned to acquire 21.57% out of Tullow’s 33.33% interest in the Lake Albert licenses. CNOOC exercised its right to pre-empt 50% of the transaction. If the deal was successful, Total and CNOOC would have each increased their interest to 44.1% while Tullow would have kept 11.8%.

Tullow has now announced that it will focus its capital expenditure on activities that will see successful shipping out of oil from the Turkana oil fields to the market. These include submission of the Field Development Plan (FDP), securing Environmental and Social Impact Assessment (ESIA) licences for upstream and midstream, and pushing the Kenyan government to secure access rights to land and water, and project financing.

“Tullow Kenya is in the process of farming down some of its equity before FID. Reducing equity is a normal, portfolio management activity. Tullow does not plan to exit Kenya,” the company reiterated its position on the Kenyan oil prospects.

The company also noted that Front End Engineering Design (FEED) studies for the upstream and midstream parts of the project was finalised, while the tendering process for wells is now complete and upstream tendering for Engineering, Procurement and Construction (EPC) has commenced.

The company is however critical on the role the Kenyan government is playing in delaying the oil farming from the Turkana roads including poor roads, security and land rights.

” Progress has been slower on some workstreams such as access rights to land and water and the long-form commercial agreements to be entered with the Government of Kenya. This slow progress means that the target of reaching FID by year-end 2020 becomes more challenging.”



Source: The Exchange

[roberto mancini] 14/3/2020 08:46

Very worrying, unforeseen production drop/shut down, be it operational, COVID-19 and it's toast, no margin of error. Fire sale will only scratch the debt surface.

Further impairments in due course.

Debt holders RBL MARCH 31 2020 I suspect are pushing for sale of producing assets Ghana Jubilee & Ten, if not it's D4E.

[sentimentrules] 14/3/2020 08:44

The Canadian mounted13 Mar '20 - 22:56 - 43254 of 43261
0 2 0
Christ on a bicycle,shorts will be pulled down Monday! Sorry ladies but that’s how the cookie crumbles 😆

.......

Dear lord..the gerbils had limbs ripped off and expect them to grow back on little bounces. Save their souls because no body parts left

Amen

[blueball] 14/3/2020 08:29

Beware the bears.

[amaretto1] 14/3/2020 06:27

Lets have a 5000 pound wager your wrong TLW share price Will be at least double by Xmas ...... put your money were your mouth is.

[smartie6] 13/3/2020 23:48

Deep inside iCal he knows, just unwilling to accept the fact that he’s lost the lot.

[smartie6] 13/3/2020 23:05

Mounted Canadian, depraved or deprived?

Grasping on every bit of positive news, and any myth that may come her way.

Shame. She knows it’s bust but still can’t accept the truth.

[the canadian mounted] 13/3/2020 22:56

Christ on a bicycle,shorts will be pulled down Monday! Sorry ladies but that’s how the cookie crumbles 😆

[icac] 13/3/2020 22:31

If anyone had listened to Mr white and bought at 20p or 17p then you wouldn't get get 1 bag if this rise back to 30p 😂😂
Buy at 7p and hitting 30p would net you over 3 bagger 👍👍😊😊 yummy yummy in my belly.

[icac] 13/3/2020 22:28

Belgium, Holland and Italy along with Ireland all on lockdown mode ...surely 7p sometime next week... time to get my wallet out .. .👍👍😊

[crossing_the_rubicon] 13/3/2020 20:38

Buy LOW
Sell high.

"Oil Surges After Trump Orders DOE To Fill Up Strategic Petroleum Reserve"

That's the way to do it..

[amaretto1] 13/3/2020 20:20

This could seriously take off NORTH !!

[amaretto1] 13/3/2020 20:10

Oil up 8 percent !

[amaretto1] 13/3/2020 19:57

3 months oil supply !!!

[amaretto1] 13/3/2020 19:57

Trump just underpinned oil market !!

[turvart] 13/3/2020 18:58

I only post on this thread because I love all your humour on a weekend

[costax1654x] 13/3/2020 18:54

Shorters13 Mar 2020 18:372 new shorters have appeared on short tracker showing 3 3% . So they sold 42 million shares on the 11 and 12th march.

[turvart] 13/3/2020 18:49

I don't have a position in TLW DB.