In an interview with Accra-based Citi FM, he explained that “We are a listed company, people have shares in our company and so we are always open to offers and that is the fact of life. But we are not actively trying to sell the business.”
Tullow has been faced with challenges recently leading to the failure to meet production targets in both the Jubilee and TEN fields operations. This led to the resignation of Chief Executive Paul Mcdade, who has been that position since 2017 and subsequently Head of Exploration, Angus McCoss.
Given Tullow Oil’s position as one of the foremost oil companies in the country, the change in leadership signals the dawn of a new beginning which could have a potential impact on jobs as the company, among other things, look to cost rationalization measures to remain profitable.
The oil company has seen some turbulent times in recent times in an attempt to develop oil fields in Uganda and Guyana.
Due to the challenges the company is facing, Tullow has announced that it has revised its key production figures stating that oil production is expected to hover around 87,000 barrels of oil per day (bopd) this year.
Meanwhile, the lower production in 2020 is to be between 70,000 and 80,000 (bopd), as it undertook a review of its production performance issues.
Tullow suspended its dividend to generate more cash to support future investment plans and current explorations.
Executive Chairman Dorothy Thompson said, “The board has, however, been disappointed by the performance of Tullow’s business and now needs time to complete its thorough review of operations.”
She hinted that Tullow is open to buyers and would consider any offer at the “proper value”.
But the company’s Head of Corporate Affairs explained that: “As a listed company; If someone makes an offer to the company we have to listen to it. It is a sort of a working answer you would expect the company to give. If someone makes an offer that is above our current share price then we are obliged to listen to it but it is not to say that we will accept it.”
Impact on Ghana
Petroleum Economist Dr Theo Acheampomg said Tullow’s challenges mean that Ghana would receive lower revenue from oil production as compared to what the company was forecasting.
“It means that the company will embark on some potential cost rationalization to reduce the cost base. It means again that people may end up incurring some debts in Ghana and some of the exciting contracts also will eventually have to go.”
“For those shares or those who have shares in Tullow, which is listed in Ghana, remember Tullow is listed both in Ghana and London. There will be a correlation between the performance and company shares listed on the London Stock Exchange and that of the Ghana Stock exchange,” he explained.