Tullow Oil expected to conclude deal in Uganda

1907 Views Kampala, Uganda

In short
Tullow has been waiting since last year to finalise a deal to bring in new partners French oil major Total and Chinese group CNOOC to start a $10 billion oil development project in Uganda.

British oil firm Tullow Oil said it expected to conclude a long-awaited deal in Uganda in September as it posted soaring first half profits and doubled its dividend.

Tullow has been waiting since last year to finalise a deal to bring in new partners French oil major Total and Chinese group CNOOC to start a $10 billion oil development project in Uganda.

Aidan Heavey, Tullow Oil chief executive said in a statement on Wednesday that While delays to the farm-down to CNOOC and Total have been frustrating, we now expect completion in September.

Tullow, which has assets across Africa and in the North Sea, posted pretax profit of $540 million in the six months to June 30, a 312 percent jump compared to the year earlier period, beating a consensus forecast of $509 million from a company-supplied poll of analysts.

Profits were boosted by a higher oil price and from the company's ramp up in production at its Jubilee field in Ghana.
The company said it planned to double the interim dividend to 4 pence per share to reflect the fundamental change in its finances brought about by bringing Jubilee onstream.

Tullow revised down its guidance for full-year oil production to between 82,000 barrels of oil per day (bopd) to 84,000 bopd from a forecast of 90,000 bopd to 94,000 given in July, due to rig delays at Jubilee.

The downgrade was widely expected by analysts following an update by Kosmos Energy , Tullow's partner in the Jubilee field, earlier in August.

Shares in Tullow, which have plummeted 27 percent in the last month, closed at 946.5 pence on Tuesday, valuing the company at 8.5 billion pounds ($14 billion).

 

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