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Tullow to cut production guidance after technical fault at Ghana oilfield

Published 08/04/2016, 10:02
Updated 08/04/2016, 10:10
© Reuters.  Tullow to cut production guidance after technical fault at Ghana oilfield
TLW
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LONDON (Reuters) - Africa-focused oil producer Tullow Oil (L:TLW) said on Friday it would have to lower its production outlook due to a technical fault that has forced a longer-than-planned shutdown at its Jubilee oilfield off Ghana.

A damaged turret bearing means a scheduled 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," the company said.

Shares in Tullow were down 3 percent at 0820 GMT.

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 $10 million on operating cash flow.

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 1-million-barrel storage tanker to assure safe production.

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