Tullow Oil records $189m post-tax loss for 2017

Source: Ghana|Myjoyonline.com | JoyBusiness
Date: 10th-february-2018 Time:  11:49:17 am

Share this story:

Oil exploration and production firm Tullow Oil recorded another loss in its operations for last year.

According to the 2017 financial results released by the company, it posted a tax loss of $189 million after write-offs and non-cash impairments; free cash flow of $543 million.

This, however, represents a significant reduction from the $597 million posted for last year.

New drillings on TEN

The company has, however, announced that it is expected to commence fresh drillings on TEN oil fields possibly before the end of the end of the first quarter of 2018.

This was after, it won the legal battle on the disputed area on the fields, after the International Tribunal for the Law of the Sea (ITLOS) made its decision with regard to the maritime boundary dispute between Ghana and Côte d’Ivoire.

More Tullow’s performance for last year  

Ghana Jubilee Full year 2017 gross production from the Jubilee field averaged 89,600 bopd (net: 31,800 bopd).

Tullow’s Corporate Business Interruption insurance has reimbursed 7,400 bopd of net production-equivalent insurance payments, bringing expected full-year effective net production from Jubilee to 39,200 bopd.

Gross production in the latter part of 2017 was consistently above 90,000 bopd and we expect to build on this as we commence drilling in 2018. 

Turret Remediation Project  Following the discovery of the issue with the turret bearing of the Jubilee FPSO Kwame Nkrumah in 2016, Tullow has been able to continue efficient production operations while working on the permanent solution which involves converting the FPSO to a spread-moored vessel.

The first phase of this work, involving the installation of a stern anchoring system, was completed in February 2017, after which the tugs maintaining the FPSO on heading control were removed.

Preparations continue in advance of the planned turret bearing stabilisation work in the first quarter of 2018. This work is expected to take place over two shut-down periods, totalling four-to-six weeks.

A further planned shut-down of approximately three weeks is expected around year-end 2018 to rotate the FPSO to its permanent heading and install the final spread mooring anchoring system.

  What others are reading

  More in this section