Exploration company Tullow Oil has reduced its 2016 capital expenditure budget by more than a third below this year's investments to $1.2 billion, cutting costs as weak oil prices continue to eat into its profit. 

The Africa-focused oil company also trimmed its full-year production forecast from its West African fields to 66,000-67,000 barrels of oil per day (bpd).

This is down from a previous forecast of 66,000-70,000 barrels of oil per day. 

Tullow Oil said it expects full-year pretax operating cashflow of around $1 billion and net debt of $4.2 billion. 

The oil producer is counting on a mid-2016 start-up of its TEN oilfields project in Ghana to boost a balance sheet that has been hit hard by the slump in crude prices since the middle of last year.

The company's CEO Aidan Heavey said that while 2015 was a difficult year across the industry, Tullow has taken appropriate steps within the business to meet the challenges presented by lower oil prices.

"We have focused our resources on our West African oil assets which, by 2017 with TEN onstream, will be producing around 100,000 bopd net to Tullow. We are also focused on managing our costs and ensuring that we have sufficient funding to meet all our commitments," he added.