Continental Focus, International Reach

Tullow Places Drilling Projects Under Review

Friday, November 14, 2014

Tullow Oil, in its Interim Management statement, revealed that a number of its drilling projects in Africa will be under review going forward. The review is aimed at aiding in cutting costs as the price of oil continues its downward trend.

The company has cut its exploration budget and said that it is refocusing its efforts on existing assets and discoveries. This is quite a change for a company who is known for boldly jumping into frontier territories and making it pay off. Currently under review are operations in French Guiana and Mauritania.

It was reported recently that Tullow has held talks with the Namibian government to withdraw from the Kudu gas project in Namibia. The company said that it had capital intensive projects across Africa and it needed to allocate capital to those projects. The gas project in Namibia has been on the drawing boards for years with little forward progress, while Tullow has a number of projects that are progressing toward development or in the development stage that could use the funds Tullow would have to spend on its share of the Kudu gas project.

Capital intensive projects in the works include the TEN project offshore Ghana, a number of discoveries in Kenya that will see a development plan submitted in 2015, and of course there is the over 2.5 billion in reserves that the company has in Uganda that need funds for development.

“We’re concentrating our firepower on our major developments and producing assets,” chief executive Aidan Heavey told Reuters.


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