Tullow Oil Suffers Revenue Decline


In short
The oil exploration company Chief Executive says the company is still in position to move on. The decline has been blamed on the drop in international oil prices.

Tullow oil, says its revenue dropped by about 34 percent for the last six months ending June 2016.The oil and gas exploration and production group says its net debt at the end of June stood at $4.7bn.

Tullow chief executive Aidan Heavey in a trading statement said the revenue fell to $541 during the period from $820 million in the first half of 2015.

The reduction in revenue has partly been attributed to lower commodity prices and reduced production in its Jubilee oil field in Ghana.

Tullow has suffered amid low oil prices, and is scrambling to shore up its balance sheet. The explorer recently announced a $300m bond auction.

Aidan Heavey says Tullow is still well placed to move forward with a restructured and more efficient business than can deliver growth from its portfolio of high quality, low cost producing, and development and exploration assets.

In April, April 2016, the President Museveni and his Kenyan counter part Uhuru Kenyatta of agreed to pursue two separate crude oil export pipelines for the development of Kenya's South Lokichar oil fields and Uganda's Lake Albert oil fields.
The Uganda pipeline route will be through Tanzania from  Hoima to the Tanzanian port of Tanga. The pipeline development is being led by Total and the Government of Uganda.
In Kenya, Tullow and its upstream partners Africa Oil and Maersk Oil, along with the Government of Kenya, are currently negotiating a Joint Development Agreement to implement the Kenya crude oil pipeline which will run from South Lokichar to the port of Lamu.
It is anticipated that for both the Kenya and Uganda pipelines, technical, environmental and social studies and tenders required will commence in the second half of 2016.