Oil and Gas in Ghana Tullow Ghana profits see 24% dip

The vessel’s turret bearing broke-down for four weeks, culminating a total revenue lost of  $24 million, bringing total revenue generated in the first half of 2016 to $542 million and a corresponding 300% dip in gross profits to $24 million, as revealed by the company’s mid-year report.

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Tullow Oil Ghana has taken a 34% hit in revenue, owing to damage to the turret bearing of the FPSO Kwame Nkrumah  in June, 2016.

The vessel’s turret bearing broke-down for four weeks, culminating a total revenue lost of  $24 million, bringing total revenue generated in the first half of 2016 to $542 million and a corresponding 300% dip in gross profits to $24 million, as revealed by the company’s mid-year report.

Sales revenue figures also dropped to 50 barrels a day affecting revenue and earnings of shareholders.

The records, however, show that Tullow Group still spends majority of their revenue on the Ghana venture. The company has set aside $700 million as capital expenditure for 2016.

READ MORE: Ten Oil Fields Tullow’s Ten Oil fields commence first oil production

Group CEO of Tullow Oil, Aiden Heavey is optimistic that the company’s revenue situation would turn around, given that the Tweneboa-Enynra-Ntomme oilfields are set to come in board soon.

Tweneboa-Enyenra-Ntomme fields are set to produce first oil in August, 2016.

They are the country’s second biggest oilfields and are set to shore up Tullow Oil revenue base from the Ghana business.

CEO of Tullow Oil Ghana says, with lessons learned from the Jubilee Fields, exploration in the TEN would be successful.

Charles Darko said “There are whole range    of lessons we are taking from Jubilee that we are taking to the FPSO John Attah Mills. Industry experience was also brought to bear by the manufacturers. We are confident that we have the right tool for the purposes that we are using it for.” He spoke in an interview with Accra-based Joy FM.

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