Comprehensive  Ghana Oil and Gas news, information, updates, analysis


News in Brief

Q2: Tullow net debt $4.7bn

  • SOURCE: | qwesa2big
  • Tullow-OilTullow Oil Plc recorded a net debt of $4.7 billion at the end of June 2016, the oil firm has reported.


    The Group’s 2016 capital expenditure guidance remains at $1.0 billion with further savings being offset by additional capex associated with the Jubilee turret issue ahead of potential insurance payments and the start of a new drilling campaign in Kenya, Tullow said in its latest update.

    “At the end of June 2016, net debt is estimated at $4.7 billion and unutilised debt capacity and free cash at approximately $1.0 billion,” Tullow said.

    The Group said its hedging strategy remains unchanged; ensuring a percentage of production entitlement volumes are hedged on a three-year look forward basis. Having temporarily suspended the execution of this strategy in the fourth quarter 2015, it was resumed in April 2016.

    In April, Tullow successfully completed its routine six-monthly Reserve Based Lending (RBL) redetermination process, securing available debt capacity of $3.5 billion. The first amortisation of the RBL is scheduled in October 2016, when commitments will reduce to $3.25 billion. The Company currently plans to refinance the RBL before any further amortisation in 2017.

    The Group also agreed a 12-month extension to the maturity of the Corporate Facility to April 2018. The Corporate Facility commitments remain at $1 billion until April 2017, when commitments reduce to $800 million with an accordion feature for an additional amount of $200 million.

    Tullow’s lending banks also agreed a further amendment to the financial leverage covenant of the RBL and the Corporate Facility.

    Tullow said this demonstrates the continued support of the Group’s lending banks during this period of low oil prices and the high quality of Tullow’s asset portfolio. Strengthening the balance sheet and debt reduction continue to be key priorities for Tullow this year. Options available include further rationalisation of our cost base, further cuts to discretionary capital expenditure, portfolio management and other funding options.


    Source: http://classfmonline.com/1.9443874


    Leave a reply

    About Us
    Reporting Oil and Gas project was launched on 4th June 2009 at Takoradi, Western Region, Ghana by Penplusbytes (www.penplusbytes.org) with the vision of providing a one stop online information and knowledge about Ghana’s oil and gas sector read more
    Twitter Activity Stream
     

    Partners We are proud to be associated with:

    Skip to toolbar