Tullow Sees Boost In 2012 Profits

online geneva;”>The British oil company Chief Executive, here Aidan Heavey, said Wednesday the financial results were in “line with market expectations and the balance sheet substantially strengthened through debt re-financing and $2.9bn from Uganda farm-down.”

Tullow has interests in three licences in Uganda in the Lake Albert Rift Basin. The Group gained these licences through the acquisition of Energy Africa in 2004 and the subsequent acquisition of Hardman Resources in 2007.

In 2009, Heritage announced its intention to sell its interests in Uganda. Tullow used its right of pre-emption to sign a Sale and Purchase Agreement (SPA) with Heritage to acquire its 50 percent interests in Blocks 1 and 3A for a total consideration of $1.45bn.

The company proposed to the Government of Uganda a partnership with CNOOC and Total where all three parties would share a one third interest across all three licences.


On March 29 2011, Tullow and its new partners signed SPAs to this affect for a total gross consideration of $2.9bn having earlier that month agreed the Memorandum of Understanding the Government.

The Government signed in February 2012 the new PSAs, enabling Tullow to complete the farmdown with the partners.

Tullow has lately come under fire for sidelining local businessmen and service providers and instead given contracts to international firms.

Meanwhile, Heavy said a final test is ongoing on major basin-opening discovery in Kenya with the Ngamia-1 and Twiga South-1 wells; Twiga South-1 well flow-tested at a combined rate of 2,351 barrels of 37 degree API oil from two zones.

“2012 was a year of major progress for Tullow. We materially enhanced the business with a basin-opening oil discovery in Kenya, by adding highly prospective new licences in Africa and the Atlantic Margins, refinancing our debt and partially monetising our Ugandan assets.”

He added: “The Jubilee Field in Ghana is now approaching its full potential and provides the base for our production profile and operational cash flow. Our financial position underpins our highly ambitious 2013 exploration programme which has high-impact wells planned in Kenya, Ethiopia, Norway, Mauritania, Mozambique, Côte d’Ivoire and French Guiana.

Heavey said this focuses on exploration-led growth, together with active portfolio management and Tullow’s strong balance sheet, provides an excellent platform for growth in 2013 and beyond.”

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