West Africa-focused oil producer Tullow plans to hedge around 60% of its output one year out, it said today, reiterating it expects its 2023 free cashflow to come in at $100m at an oil price of $80 a barrel.
In March, Tullow's chief financial officer Richard Miller told Reuters the company planned to hedge around 40% to 50% of its output for the next 12 months.
"Commodity hedging policy (is) reinstated to ensure 60% downside protection for the first year ahead, and 30% for the second year, whilst maintaining full upside exposure for no less than 60%," Tullow said in a trading statement.
Tullow's hedges for this and next year currently stand between $55 and $75 a barrel and it forecasts full-year production to average between 58,000 and 64,000 barrels per day with a planned ramp-up of its Jubilee South East wells offshore Ghana in the second half.
