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Tullow Oil announces $350m CAPEX for 2020, rejects financial distress tag

Tullow Oil has rejected suggestions that it is in financial distress a development that could open it up forceful takeover by another oil firm.

Tullow has maintained its operations are profitable and will deliver at least $150 million in free cash flow in 2020.

The company is also working to invest about $350 million in Capital Expenditure next year adding that “this shows that we have the resource to invest in the business and its operations.”

Speaking to JoyBusiness the Executive Vice President and Managing Director of Tullow Ghana, Kwaku Awotwi says developments in the coming days would show that the company is poised to quickly turn things around in the coming months.

The Oil exploration firm has also maintained that the planned comprehensive review of the company to turn things around, would not include employee cuts of the business.

Mr Awotwi has added that they are looking at completing this review in early 2020, at which point we will know for sure.

Projected projection update for 2020

The Executive Vice President also disclosed that gross production is expected to be in the range of 120 kbopd to 140 kbopd, related to approximate 150 kbopd in 2019. He also revealed that the midpoint for 2020, should be pegged at 81, 740 and 48,760 bopd for Jubilee and TEN respectively.

On whether there would be fresh drilling in 2020? Mr Awotwi was of the view that the plan for 2020 is currently under review in line with the usual annual business planning cycle.

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