AGM Trading Update
Thursday 28 April 2016
This statement is issued in advance of the Group’s Annual General Meeting which is being held at Tullow Oil plc, Building 9 Chiswick Park at 12pm today. The Group will announce its Trading Statement and Operational Update on 30 June 2016. Half year results will be announced on 27 July 2016.
Highlights
Group working interest production for the first quarter averaged 59,200 bopd for West Africa and 6,500 boepd for Europe. This was marginally below expectations due to the need to implement new Jubilee off-take procedures at the end of March following damage to the Jubilee FPSO turret bearing.
New Jubilee off-take procedures being implemented with off-take and production to resume in the next few days. Group production guidance will be re-issued once new operating arrangements have stabilised. No material impact on future Group cash flow is currently expected due to continued production and appropriate insurance policies in place.
The TEN Project is now over 90 per cent complete and first oil remains on target for July/August 2016.
East Africa Governments agreed to develop resources in Uganda and Kenya with separate export pipelines.
Ongoing assessment of recently completed South Lokichar appraisal programme in Kenya indicates potential to increase recoverable resources up to 750 million barrels with further exploration potential supporting an upside of 1 billion barrels.
Working hydrocarbon system discovered with the Cheptuket-1 exploration well in Kenya’s Kerio Valley Basin.
Routine six-monthly Reserve Based Lending redetermination process completed. Debt capacity of $3.5 billion secured.
Revolving Corporate Facility extended by 12 months to April 2018, with an initial committed amount of $800 million as of April 2017. An accordion feature has been agreed with Lenders for an additional amount of $200 million.
End of April net debt estimated to be c.$4.5 billion and unutilised debt capacity and free cash of c.$1.3 billion. Capex guidance for full year 2016 revised down by c.$0.1 billion to c.$1.0 billion with further savings expected.