2021 outlook27 Jan 2021 07:28
2021 Outlook
-- Group working interest oil production is forecast to average 60-66,000 bopd in 2021. This forecast reflects the
drilling hiatus in 2020, a planned shut-down in September on Jubilee and deferred development
drilling on Simba in Gabon.
-- Capital expenditure is forecast to be c.$265 million, with an additional c.$100 million to be spent on
decommissioning.
-- Organisational restructuring completed which is expected to deliver sustainable annual cash savings of over $125
million.
-- Underlying operating cash flow(1) is expected to be c.$0.5 billion at $50/bbl for the first year of Tullow's new
business plan which aims to deliver c.$7 billion underlying operating cash flow over the
next 10 years; 2021 pre-financing cash flow is expected to be c.$0.2 billion at $50/bbl(2) .
-- In Ghana, oil production from Jubilee and TEN for the year to date is in line with expectations, supported by
gas offtake from the Government of Ghana of c.125 mmscfd.
-- A new oil offloading system is being commissioned on Jubilee and is expected to be ready for a first lifting in
February.
-- A drilling rig is being mobilised to Ghana to commence operations in the second quarter of the year and the
first new production well on Jubilee is forecast to be onstream in the third quarter.
-- In the Non-operated portfolio, development drilling is restarting in Gabon and Equatorial Guinea, whilst
decommissioning activity continues in Mauritania and the United Kingdom.
-- In Kenya, following approval of the 2021 Work Programme and Budget, Tullow received an extension to its
exploration licences to the end of 2021. Tullow and its Joint Venture Partners are now re-working
the development project to ensure that it is robust at low oil prices and expect to submit a revised plan to the
Government of Kenya later this year.
-- In Côte d'Ivoire, Tullow has reduced its onshore exploration portfolio to focus on unlocking value from the
CI-520 block.
-- In the Suriname-Guyana basin, drilling of the Goliathberg-Voltzberg North exploration well in Block 47 in
Suriname is expected to commence shortly. Work also continues on developing the prospect inventory
on the Orinduik and Kanuku licences offshore Guyana.
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