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Tullow revenue plummets amid oil price woes

11th February 2015

London-listed junior, Tullow Oil, has reported a USD 2bn pre-tax loss and suspected dividend payments

London-listed junior, Tullow Oil, has reported a USD 2bn pre-tax loss and suspected dividend payments
Cost reductions, diverse funding, hedging and suspension of dividend provide financial flexibility, according to Tullow

The Africa-focussed player plans to cut operating expenses by USD 500m over the next three years, as well as suspending dividend payments.

“2014 was a difficult year for our industry and a challenging one for Tullow as our results today demonstrate,” said Aiden Heavey, Tullow chief executive officer. “In response to this, and the fall in the oil price, we have reset our business and are focusing our capital expenditure on high-quality, low-cost oil production in West Africa.

“We have increased and diversified our sources of debt capital, reduced our exploration expenditure, implemented significant cost saving initiatives and we are suspending the dividend. These measures will provide us with substantial headroom and liquidity to deliver on our strategy. The TEN project in Ghana, which remains on track, will increase our net West Africa oil production to over 100,000 bopd by the end of 2016 generating substantial cash flows and placing Tullow in a strong position when the sector recovers.”

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