Tullow Oil has revealed that it will no choice than to reduce its production outlook due to a technical failure that has resulted to a long shutdown at its Jubilee oilfield in Ghana.

According the company, the failure of the turret bearing signifies that the planned maintenance shutdown will last for additional two weeks and production flows will take even more time to ramp up as it is now using a 250,000-barrel shuttle tanker and a 1-million-barrel storage tanker to guarantee safe production.

Tullow’s shares dropped by 3% on Friday. Analysts have said that the two-week reduction in output will decrease output by about 1,000 to 1,500 bpd net to the company. This signifies that the company will witness an effect of over $10 million on operating income.

The company has said that the situation will not have a measurable effect on its revenue, or on its TEN oilfields which will commence operation soon, Reuters reports.

Anita Fatunji