Nairobi — Tullow oil has suspended the trucking of Turkana crude oil citing severe damages by adverse weather conditions that were experienced in the last quarter of 2019.
In a Trading Statement & Operational Update released Wednesday, the company said the trucking procedures are currently halted and will resume construction once the roads are considered safe.
“The early oil pilot scheme (EOPS) remains on hold until all roads are repaired … Work at the sites continues, with Joint Venture Partners and the Government of Kenya to progress the development project,” reads the statement.
According to the company’s financial update, Tullow says it expects to report pre-tax impairments and exploration write-offs of c.$1.5 billion (c.$1.3 billion post tax) primarily due to a $10/bbl reduction in the Group’s long-term accounting oil price assumption to $65/bbl.
Commenting on the company’s 2019 performance, Tullow Oil Executive Chair, Dorothy Thompson, said: “Tullow has ended 2019 with average production of 86,700 bopd and free cash flow generation of c.$350 million.
The 2019 Full Year Results will be released on 12 March 2020.
“Since our December announcement, Tullow’s senior team has been working hard on a major review focused on delivering a more efficient and effective organisation. The fundamentals of our business remain intact: recent reserves audits demonstrate that we have a solid underlying reserves and resources base in West and East Africa, our producing assets continue to generate good cash flow and we retain a high-quality exploration portfolio,” she said.
She says the fundamentals of the Tullow business remain intact: recent reserves audits demonstrate solid underlying reserves and resources base in West and East Africa and the company has retained a high-quality exploration portfolio.
The transfer of stored crude oil from Turkana to Mombasa by road commenced on June 3, 2018, with the first truck arriving at the Kenya Petroleum Refinery Limited in Mombasa on June 7 of the same year.
This is after Kenya resolved to establish its second crude export by March 2020.
Read the original article on Capital FM.