Update on Operations25 Aug 2021 15:57
Update from Tullow’s IR Department.
Q. Are things progressing, with the tie in of the second well drilled?
A. Yes, good progress on the well. Expected to be tied in this quarter so we’ll be able to provide an update at our HY Results on 15 September.
Q. There is a planned shut down due in September, what is the estimated time frame for this?
A. A maintenance shut-down of approximately one month is planned for Jubilee. The timing of this was initially 2H 2021, but it is likely to shift into 2021 to optimise the work programme. We will also update on 15 September.
Q. How is the Kenya FID decision coming on, are the government close to accepting the new development decision, as I'm concerned the December deadline, leaves us with very little time to tweak if necessary.
A. A lot of work has been done on the development concept and we are working collaboratively with the Government on the submission of an FDP. Therefore, it is unlikely we would get to the deadline and without an agreed way forward.
Q. One of the AGM resolutions was to be able to do a BUY Back programme up-to 10%, would this not be a perfect time for the company to do this, at current Share price?
A. There is no plan to buy back shares at this time.
Q. Last Novembers CMD, stated in the presentation, that oil prices in excess of $60 would result in Dividends. Can the company recommend a dividend, or are we restricted due to the new bonds that were replaced in May-2021?
A. I am not sure which chart you are referring to, but I can confirm that we have not committed or have the intention to re-state a dividend if oil prices in excess of $60/bbl. Our priority for free cash flow debt reduction. Shareholder returns will certainly be a consideration once gearing and net debt is much lower.
Q. Do you have a current status on the NET BOPD we are currently achieving?
A. Day to day there are fluctuations above and below our guidance figures, so we don’t provide singular date updates. Group average working interest production for the first six months of the year was 61.2kboepd and our guidance for the full year is 59kboepd.
Q. Are we any closer to the $75 FID Payment from TOTAL?
A. It is still expected this year.
Q. Where do you see the BOPD at Q4? Are we due to be at 2019/20 production figures going into 2022?
A. We don’t guide specific exit rate figures, but we intend to share more at our results in September regarding near-term production. I can however guide you to broadly flat production from 2021 to 2022 from TEN and the non-operated portfolio (with the exception of the Equatorial Guinea and Dussafu Marin permit assets which were sold). Production from Jubilee is expected to increase slightly, benefiting from the new wells. Full production guidance for 2022 will be provided in the January Trading Statement, once the work programmes have been agreed with our joint venture partners and signed off internally
Looks like the 1H results on the 15t
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