Tullow Oil makes new discovery in Mauritania
Exploration group makes oil discovery in Fregate well; reports slump in profits
Increased production from the Jubilee field in Ghana and firm oil and gas prices helped Tullow Oil grow its revenues in 2013. Photograph: John Cogill/Bloomberg News.
Exploration company Tullow Oil reported solid revenue and cash flow growth in 2013, on the back of increased production from the Jubilee field in Ghana and firm oil and gas prices.
Revenues advanced by 13 per cent to €2.6 billion, and the group’s operating cash flow increased by 7 per cent. Profits were hit however by a combination of factors, including an increase in exploration write-offs of $200 million to $871 million. Profits before tax slumped by 72 per cent, down to €313 million.
The group also announced that it has made a new discovery in Mauritania, with the Fregate well achieving an important technical breakthrough by establishing a new oil play in deepwater Late Cretaceous turbidites. However, whistt encouraging, the company said that “further assessment and analysis will be required before follow up activities.”
Aidan Heavey, chief executive of Tullow, said that the company “performed well in 2013”.
“The business generated almost $2 billion of operating cash flow and has established a flexible and strong balance sheet,” he said, adding that “an ambitious exploration and appraisal programme is planned for 2014 which is targeting opportunities in our core plays in Africa and the Atlantic margins. As with previous years, we are aiming for resource additions of over 200 mmboe”.
In 2014, Tullow is planning to invest around $1 billion in exploration and appraisal with major campaigns in Mauritania, Norway, Kenya and Ethiopia and a first well offshore Guinea.
Tullow is to pay a final dividend of 8 pence per share,