The company said that its high-margin producing assets in West Africa, substantial development assets in East Africa and exploration licenses in industry hotspots provide Tullow with a strong foundation for growth in the years ahead.
“Tullow has worked hard over the past few years to become a self-funding, cash-generating business with a robust balance sheet, low-cost assets and a rigorous focus on cost and capital discipline,” the company said in a statement.
In West Africa, 2018 net oil production averaged 88,200 barrels of oil per day(bopd) with the company focused on African operations, projecting 93,000 – 101,000 bopd in 2019.
Tullow said that it has agreed on principle for capital gains tax associated with its $900 million farm down deal in Uganda to Total and CNOOC Ltd.
Last December, Uganda gave Tullow Oil conditional approval to sell part of its stake in Ugandan oilfields to France’s Total and China’s CNOOC.
In Kenya, the company said that the Kenya development plan is progressing well, and the project continues to target a Final Investment Decision (FID) in late 2019 and First Oil in 2022.
In February 2018, Tullow announced that following a full assessment of all the exploration and appraisal data, Tullow estimates that the South Lokichar in northern Kenyan basin contains 240 – 560 – 1,230 million barrels of recoverable resources from overall discovered oil in place of up to 4 billion barrels.
The additional remaining conventional undrilled prospect inventory of the basin is approximately 230 million barrels risked mean recoverable resources, not including further potential in under-explored plays, the company pointed out.