Tullow Oil Plc has debunked media reports indicating that French oil giant Total is absorbing the company, after its shares nearly halved last Monday and its Chief Executive resigning.
The Africa-focused oil explorer and producer suspended dividend, following technical challenges at its Jubilee and TEN oil fields in Ghana that culminated in a production cut.
The company has since reviewed its production forecast, expecting to averagely produce 87,000 barrels per day (bpd) till year ending, and between 70,000 and 80,000 bpd in 2020, as it assesses the performance issues.
Speculations in Accra on Friday suggested that French oil firm – Total SA – is finalizing with Tullow and the government of Ghana to take over its operations in the West African nation.
The rumor came after the oil firmsaid it was open to receiving proper offers to acquire the company.
However, Tullow has denied engaging in any acquisition talks with the French oil firm, describing the information as utterly false and should be disregarded.
“Tullow has not received any expression of interest from Total, there has been no talks with them and the company is now focused on its reassessment exercise to put in measures to improve performance and give shareholders value for their investment,” a senior executive at Tullow Oil Ghana told GBC News’ Sani Abdul-Rahman.
Tullow’s board expects a thorough review of its flagship African projects which have seen major setbacks this year. The board wants an improved cash flow in 2020 through reductions in capital expenditure, operating costs and corporate overheads.
Source: Sani Abdul-Rahman, GBC News