Tullow Oil CEO Resigns over Low Production from Ghana Fields

…Company Outlines Reasons for Production Fall

Tullow Oil Plc’s Chief Executive Officer (CEO), Paul McDade, has resigned after the company cut its production outlook and suspended its dividend which has caused a 60% fall in company’s shares.

The CEO together with the company’s exploration director, Angus McCoss, resigned immediately after the continuous dip in the company’s production performance in Ghana and dividend suspension.

“Whilst financial performance has been solid, production performance has been significantly below expectations from the group’s main producing assets, the TEN and Jubilee fields in Ghana” London-based Tullow said on its website on Monday.

According to the company, the group’s output next year is forecast at 70,000 to 80,000 barrels a day – down from the 87,000 a day expected for this year and expected to hover around the bottom of that range for the following three years.

The company has been facing problems at its operations in Ghana because of mechanical issues at the Jubilee field and a delay in completing a well at the TEN offshore field.

In a press statement released on Monday and published on the company’s official website, signed by its secretary, Adam Holland, they stated that some factors causing the significant fall in production performance in Ghana.

“On the Jubilee field, these factors include significantly reduced offtake of gas by the Ghana National Gas Company which Tullow makes available at no cost, increased water cut on some wells, and lower facility uptime.”

“At Enyenra (one of the TEN fields) mechanical issues on two new wells have limited the well stock available and there is faster than anticipated decline on this field. The non-operated portfolio is performing well, and production is expected to be sustained for the medium term.”

According to its Executive Chairperson Dorothy Thompson “the Board has been disappointed by the performance of Tullow’s business and now needs time to complete its thorough review of operations”.

Tullow Oil has begun a process to search for a new group chief executive officer and is talking to internal and external candidates.

Source: Jonas Danquah || ghananewsonline.com.gh