Following a setback on the offshore Jubilee field in Ghana, Tullow Oil, has revealed that it has cut its 2016 expenses. According to the CEO of Tullow Oil, Aidan Heavey (photo) it has been a very busy start to 2016 for Tullow.

In December, 2015, Tullow, submitted its complete development plans to the government of Ghana for the Jubilee Field. Operations on the field were limited that year due to technical issues at a gas compression system.

Also in early April, the company had said that a part of the Kwame Nkrumah floating production storage and offloading facility was damaged and no longer functioning as designed.

Oil and natural production can resume, but Tullow has revealed that it will have to review its operational techniques.

The company was projecting a 2016 average production rate of about 101,000 boepd at the Jubilee field but now it says that output will average around 80,300 bpd for Q1.

Tullow started 2016 with plans to reduce its expense plans from $1.7billion to $1.1billion and was planning to cut even further. Recently the company announced again that it is slashing its capital spending estimates from $1.1billion to $1billion.

However, the company has said that it has sufficient loan support to brag of the potential of its holdings, the Business and Financial Times reports.

Anita Fatunji