UK oil company Tullow Oil last week disclosed that while it will be focussing its exploration expertise on unlocking additional value from the company’s asset base, it is also limiting its capital exposure in Guyana and Argentina.
In Ghana and Côte d’Ivoire, Tullow’s team is maturing prospects around the TEN FPSO and subsea infrastructure as well as in the adjacent block, CI-524. 4. However, in the emerging basins of Guyana and Argentina, Tullow is focused on limiting its capital exposure while also seeking to capitalise on its significant positions in both countries.
“Tullow also continues to focus on unlocking value from the substantial prospective resource base in the emerging basins of Guyana and Argentina, while seeking to mitigate capital exposure from historical work commitments of (around) US$50 million in 2022, through farm-downs,” the company said in a statement in which it announced its Half Year results for the six months ended 30 June 2021.
According to the company, this includes the Beebei-Potaro exploration well on the Kanuku Block in Guyana which will target the prolific Cretaceous light oil play of the Guyana-Suriname Basin, as well as a seismic acquisition over Block MLO 122 in Argentina.
A report by Reuters stated that Tullow’s Chief Executive Officer Rahul Dhir told the news agency that the company was also looking to cut its exposure in Guyana.
“Tullow is just taking a step back. The overall strategy is to allocate more capital to our core production assets, so what we are looking to do in Guyana for instance is to bring in partners and reduce our capital exposures,” Dhir was quoted as saying.
The oil company, which operates in Africa and South America, made a net profit of US$92.7 million for the six months ended June 30, swinging from a US$1.33 billion net loss a year earlier – when it booked write-offs and impairments of $1.4 billion.
Revenue fell to US$726.8 million from US$731.0 million, as lower production was partially offset by stronger oil prices, it said.
