Tullow Oil’s Operations in Gabon Remain Unaffected by Coup
In the wake of a presidential coup in Gabon last month, Tullow Oil Plc, a prominent oil company, has reported that its operations and assets in the country remain unaffected. Gabon, a central African nation, accounts for approximately a quarter of Tullow’s crude oil production. The company has managed to maintain a steady production of about 12,800 barrels of oil per day (bopd) from non-operated assets in Gabon. Despite the political upheaval, cargo liftings have continued as usual, according to Rahul Dhir, the CEO of Tullow Oil.
Secured Licenses and Asset Swap
Before the overthrow of Gabon’s president, Tullow had secured approval to extend some of its licenses until 2046. Additionally, the company struck a cashless asset swap with Perenco SA’s Gabon unit earlier in the year. This strategic move allowed Tullow to optimize its equity interest in certain key fields in Gabon. Under Dhir’s leadership, the focus of the company has been on familiar assets, particularly those in Ghana.
Surge in Shares and Shift in Identity
Following the announcement that the gross production of the Jubilee field had surpassed 100,000 bpd, Tullow’s shares experienced a surge. This marked a significant milestone for the company. In a notable shift in direction, the company has also exited its business in Guyana, indicating a move away from its former identity as a wildcat explorer. Dhir mentioned that the company is now entering a ‘harvesting phase.’ Future exploration will be centered around existing assets in Ghana, Cote d’Ivoire, or Gabon.
Kenyan Project Challenges and Optimism
However, not all has been smooth sailing for Tullow. A potential growth project in Kenya has faced ongoing delays. Furthermore, the project experienced the withdrawal of minority partners TotalEnergies SE and Africa Oil Corp. Despite these setbacks, CEO Dhir remains optimistic about the situation. He stated that having the Kenyan government as the sole partner provides more flexibility and options to advance the project.
Implications for the Future
The resilience of Tullow’s operations in Gabon amidst political turmoil is a testament to the company’s strategic planning and execution. The company’s ability to continue business as usual in the face of such challenges is noteworthy. Moreover, the shift in focus to existing assets and the optimism surrounding the Kenyan project indicate a promising future for the company.
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