Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
look its just like the last RBL. Tullow have voluntary meetings with its lenders and are working on reducing the RBL over time and have actually reduced this facility this past year.
If there were problems with the lenders do you not think they'd have demanded a rights issue earlier in the year with oil at $20-$30 and Tullow making a loss then?
Tullow oil are sitting pretty they just received $500m cash and all year have been cutting overall costs to roughly $35 a barrel.
Oil is now $48 a barrel with 60% of their production still hedged at $57.
Tullow have $1bn of liquidity which I am sure they will look to voluntarily cut again come January as they're cashflow positive at $35 Brent.
and getting them out of the way which will obviously reduce costs massively going into 2022.
Then focusing 80% of spending on existing assets to increase production.
Les slipping RBL redetermination for Jan has been approved.
well they increased uptime from 91-98%.
They reduced Jubilee costs 23% with a further decrease in costs of 10% pencilled in for 2021
They generated 60% more gas.
They have targeted future drilling costs looking to reduce them 20%
Operating costs will be lower in 2021 than 2020 whats not to like.
Ghana uptime efficiency up to 98% from 91%.
Gas extraction to rise 8 fold by 2024.
Jubilee Costs fallen from $12.7 to forecast $9.9 2020 and $9 2021
you cant say they dont know what they're doing and all in a short time of taking over last management.
China bought billions worth of oil stockpiled.
However, all those billions of oil vanished september/october time from both floating storage and onshore storage.
China now has to refill it all and buying so much middle east supplies are tight.
actually i take that back the are hedged 60% production i forgot and its 5.30am.
they'll be getting $2 a barrel extra x 40% of their production which works out around $23m extra per day.
if OPEC+ delay supply for 3 months the demand for flying etc will impact straightaway as the virus vaccinations rollout from early/mid December.
https://www.theguardian.com/world/2020/nov/23/us-germany-and-uk-could-start-covid-vaccinations-as-early-as-december