Tullow posts significant financial results

By: Masahudu Ankiilu Kunateh

Tullow Oil plc, Africa’s leading independent oil firm has hinted that the company recorded positive financial results in 2011, with sales revenue increasing by 111 per cent to $2.3 billion, up from $1.1 billion in 2010.
Profit for the year also increased by 670 per cent to $689 million, far more than the $90 million recorded in 2010. This came to light at the oil exploration firm’s investor forum held in over the weekend.
In spite of the positive outlook of the company in the year under review some shareholders at the investor forum were unhappy about the value of their shares, given the nonstop depreciation of the Ghanaian cedi against the major foreign currencies, notably the US Dollar, Pound Sterling, and the Euro.
The Founder and Chief Executive Officer (CEO) of Tullow Oil plc, Mr Aidan Heavey, told the shareholders that plans were at foot to purchase a new Floating Production, Storage and Offloading (FPSO)  vessel  for Ghana’s Jubilee Field . This is because of the high prospects of starting full production at new oil discovery sites in the country.
According to Mr Heavey, the decision to acquire a second FPSO with an estimated capacity to process 100,000 barrels of oil per day (bdp) is currently at the evaluation stage, after which a report will be presented to the Ghanaian government for approval.
Currently, the FPSO Kwame Nkrumah, which is operational at the Jubilee Field, has a capacity to process 120,000 barrels of oil per day (bpd), and in addition with the new FPSO, processing capacity will be increased to 220,000 barrels of oil per day.
The CEO told the shareholders that detailed information on the new FPSO, such as where it would be assembled, the possibility of the involvement of Ghanaians in the assembling and the cost involved, would be known after the evaluation.
The US$875 million FPSO Kwame Nkrumah, which is 65 metres wide, 330 metres long and about the size of three standard football fields put together.
Presently, the FPSO Kwame Nkrumah produces below capacity at 70,000 barrels of oil per day but it is expected to hit the 90,000 barrels mark by the end of 2012 and the 120, 000 bpd for full capacity in 2013.
Interacting with some economic and financial journalists after the maiden investor forum, Mr Heavey thanked his shareholders for their support and confidence they reposed in the oil giant.
He told them that one year after listing on the Ghana Stock Exchange (GSE), the company has made giant strides in the global oil industry.
Mr Heavey cited the drilling and flow testing of the Tweneboa, Enyenra and Ntomme fields, collectively known as the TEN Project, and it anticipates full production of the three oil fields very soon.
Tullow is finalising a plan for the development of the TEN Project, after which it would submit the document to the government for approval, the Founder and CEO added.
If the government approves the plan by the end of this year, it is most likely the first oil from the three fields will flow after 30 months, Mr Heavey revealed.
According to him, Ghana was in a good position because it had found oil at the right time, adding that the actual value of the country’s oil was higher than that of other countries in terms of quality, not quantity.
After the investor forum, the annual general meeting of Tullow Oil plc is scheduled to take place in London on May 16, 2012.

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