Tullow has posted a boosted net profit for the first half of 2012 as a result of a farm-down of the company’s Ugandan assets. CNOOC and Total took part in the farm-down, which was completed in February.
Net profit for the first six months of 2012 rose to US$ 566.9 million, up from US$ 347.3 million in the previous year. This increased profit meant that rising costs from mature assets with declining production rates could be absorbed. In addition, the company was able to set aside US$ 451.3 million for exploration, a major increase on the figure of US$ 54.6 million that the company posted in the first half of 2011.
According to Tullow, production rose by 3% to approximately 77 400 bpd. Sales volumes also rose by 6% to 67 900 bpd.
Production from Tullow’s Uganda project is estimated to be more than three years away, with a predicted total project cost of US$ 8 billion to US$ 12 billion. The Ugandan government is currently reviewing plans for the development of the field and the construction of a refinery.
Tullow released a statement saying, “The operators have shared these development plans with Government and are now about to embark on a joint detailed review of this plan … The government of Uganda is in the process of establishing a multi-disciplinary and cross-Ministerial Committee to oversee the review of these development plans. Following government approval of the plans, it is expected that first production will follow around 36 months later.”
Edited from various sources by David Bizley