Tullow snaps up six licences off Peru

Tullow Oil news
Tullow Oil news

Africa and South America-focused Tullow Oil said today that it had beefed up its portfolio with six new licences off Peru.

The London-listed firm also revealed it had been awarded a 90% interest in two licences onshore Côte d’Ivoire.

In Peru, the company bought a 100% stake in a five blocks from Perupetro and a 35% interest in another licence from Karoon Gas Australia.

In a trading update ahead of next month’s publication of its full-year results, Tullow said it expected to report revenue of $1.7billion and gross profit of $800million for 2017.

The group also expects to have generated $500million of free cash flow, significantly exceeding the forecast at the start of the year.

The increase is primarily due to strong production performance, rigorous cost discipline and a rising oil price, Tullow said.

Tullow chief executive Paul McDade said: “Tullow delivered strong operational and financial performance in 2017 against the backdrop of continued industry volatility.

“The business is expected to generate free cash flow of $0.5billion, above expectations, due to high levels of operated production and further progress on cost and capital efficiency.

“There was also material improvement in the group’s balance sheet, with significantly reduced gearing and an overall reduction in net debt of $1.3billion.

“Over 2018 we expect to continue this positive momentum. With our diverse low-cost assets and high-graded exploration portfolio, enhanced by recent licence additions in Côte d’Ivoire and Peru, we have a strong foundation to grow the business and further reduce our debt.”