Tullow Oil eyes higher revenue and profits for 2013

Wednesday 15 January 2014 18.13
Tullow Oil also issues operational update on its Kenyan work
Tullow Oil also issues operational update on its Kenyan work

Tullow Oil has said it is expecting total revenue of $2.6 billion for 2013 and gross profit of $1.4 billion, both up on the previous year.

In a trading update, the company said that its sales volumes are expected to climb from 68,000 boepd to 74,400.

The company's chief executive Aidan Heavey said that Tullow is a stronger company at the start of this year compared to last year.

He said the company made good progress across the business over the past year despite facing challenges within the oil and gas sector. 

"Our exploration successes in Kenya and Norway mean that Tullow is meeting its resource addition targets and expects to deliver in excess of 200 mmboe in 2014. We have an exceptional exploration portfolio and will drill over 40 wells in the next 18 months in a wide-ranging campaign", the CEO said. 

"We continue to advance a pipeline of high quality development projects in West and East Africa. 2014 is full of opportunities for our business and the Board is confident that Tullow will have another strong and successful year," he added.

Meanwhile, fresh oil finds were announced by Tullow in Kenya's arid and under-developed north, further raising the prospect of a potential major boost to the country's economy.

Tullow said it had raised its estimate of resources there to over 600 million barrels after new discoveries at two onshore wells in northern Kenya.

"Exploration results to date have proven that Tullow's onshore acreage in northern Kenya has the potential to become a significant new hydrocarbon province," the company's exploration director Angus McCoss said in an update on its operations in Kenya.

"Tullow believes that the overall potential for the basin, which will be fully assessed over the next two years through a significant programme of exploration and appraisal wells, is in excess of one billion barrels of oil," the company said. 

The latest discoveries - two wells in Block 10BB,  Amosing-1 and Ewoi-1 - mean Tullow has seen seven consecutive finds in northern Kenya.

The Africa-focused company made its name when it struck huge oil finds in Ghana and Uganda.

Prior to the latest discoveries Tullow had already found oil the Ngamia-1, Twiga South-1, Etuko-1, Ekales-1 and Agete-1 wells in Kenya.