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


News in Brief

Tullow Oil shares rise despite fault at Ghana oil field

10c195b65b09457a65053757f1ebf0d5_LAfrica-focused oil producer Tullow Oil said yesterday that it would have to lower its production outlook due to a technical fault that has forced a longer-than-planned shut-down at its Jubilee oil field off Ghana. The shares rose, however, as crude oil prices advanced.


A damaged turret means a maintenance shutdown will take another two weeks and production flows will take even more time to ramp-up, Tullow said.

“Tullow’s production guidance will be re-issued once the new operating arrangements have stabilised,” it said.



Analysts at Stifel estimate the two-week production cut would reduce full-year output by around 1,000-1,500 barrels per day net to Tullow, meaning an impact of more than $10m (€8.77m) on operating cashflow.

Tullow said the issue would not have a material impact on its revenue nor on its Ten oilfields, due to start operating this summer.

The company said it was now using a 250,000-barrel shuttle tanker and a 1m-barrel storage tanker to assure safe production.

Shares in Tullow nonetheless erased an early decline, to rise over 1.5% in London, as the wider market for oil stocks rose.

Oil prices rose yesterday, lifted by hopes that a punishing global excess of crude oil could be nearing a tipping point and firm economic indicators from the US and Germany that cast a positive light on growth in fuel demand.

Declines in US shale oil output and optimism over a proposed freeze in oil production, to be discussed by producers at a meeting in Doha next week, in particular helped to boost prices.

Brent futures were $1.85 higher at $41.28 at one stage, and were on track for a weekly gain of more than 6.5%.

Source: http://starrfmonline.com/1.8897641

Share this article

Leave a reply

Personality of the Month
Follow Us Online
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
Events Calendar
<< Jan 2018 >>
MTWTFSS
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31 1 2 3 4
Twitter Activity Stream
 

Partners We are proud to be associated with:

Skip to toolbar