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Tullow oil boss Tullow investment in TEN to continue despite spending cut

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Aidan Heavey, chief executive of Tullow Oil. Photo: Mark CondrenAidan Heavey, chief executive of Tullow Oil. Photo: Mark Condren play

Aidan Heavey, chief executive of Tullow Oil. Photo: Mark CondrenAidan Heavey, chief executive of Tullow Oil. Photo: Mark Condren

Tullow Plc has given assurance that its investment in the TEN oil field will continue despite a major spending cut after reporting a net loss of $1.03 billion in 2015.

The chief executive of Tullow Oil, Aidan Heavey said: "In the year ahead, we have three key priorities: ensuring continued low cost production from West Africa - including the start-up of production from TEN between July and August 2016; driving further reductions in operating costs and capital expenditure; and focusing on deleveraging the balance sheet through free cash flow generation and strategic portfolio management."

He added that once "TEN is completed, a chunk of our capital programmes are finished." Tullow will become cash flow positive from the end of this year, he said.

The company said it is ready to make cuts to capital spending to realign with falling crude oil prices.

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The exploration firm yesterday announced a $300 million cut in its budget for capital expenditure. The budget for this year is now 900 million dollars from an initial projection of $1.2 billion.

Tullow has a 35pc stake in the huge Jubilee offshore oil field off Ghana. Tullow also has a 47pc stake in the massive TEN field close to Jubilee.

The TEN is scheduled to deliver first oil in June or July this year, with a production rate of 80,000 barrels of oil per day compared to 66,600 last year.

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