British oil and gas explorer Tullow Oil has served notice that it will miss its full-year oil output target due to a scheduled delay at an oil field in Ghana, while it improved its free cash-flow and net debt guidance.
According to Tullow, oil production will likely marginally miss the targeted range of 58,000-60,000 barrels per day (bpd), mainly due to the delays at the Jubilee South East field offshore Ghana as well as reduced water injection.
The low water injection rate is expected to be solved by year end, the Africa- and South America-focused explorer said on Wednesday (November 15).
Following Tuesday’s announcement of a $400mn debt facility deal with mining giant Glencore, the London-based company said it improved its free cash flow and debt guidance for the year, as well as lowered its anticipated capital spend, writes the Business & Financial Times newspaper.
Full-year free cash flow is now seen at around $150mn, up from $100mn, while expected net debt is reduced by $100mn to $1.6bn and capital spend to $370mn from $400mn.
Source: Daily Mail GH