As the prices of crude oil in the global market continues to fluctuate, Tullow oil has decided to concentrate on seismic surveys, processing and interpretation, high-grading and progressing potential leads to drillable prospects.

The Africa focused company’s financial result for 2015, revealed that revenue fell by 27 % to $1.6 billion as its operating cash flow also fell by 38 % to less than $1 billion.

Reduction on exploration contracts amounting $749 million as well as a contract service charge of $186 million resulting from much lesser levels of exploration and appraisal drilling activity scheduled for H1 of 2016 are part of expenses that oppressed the company’s net incomes.

As a matter of fact, the reduction in exploration expenses are part of the company’s plan to cut total capital cost from $1.1 billion in 2016 to $300 million in 2017.

Tullow Oil has said it will keep on looking for less expensive and highly prospective acreage in principal areas so as to ensure that the business preserves its foremost exploration portfolio.

“Exploration will continue to be a key part of Tullow’s long-term growth strategy, however, given sustained low oil prices, capex will be around $0.1 billion in 2016,” Aidan Heavey (photo), Tullow Oil’s CEO told Oil news Kenya.

He added that the Field Development Plan (FID) presented to the Government of Kenya in December, will create a basis for talks on possible FID for the country and Uganda.
 
 
Anita Fatunji