Tullow’s tricky balancing act
The London-listed player has shrugged off disappointing drilling results, saying it remains committed to exploration-led growth. NJ Watson reports
TULLOW Oil may have been forced into writing off about $670
million last year, mostly due to dry wells, but it has no
intention of changing its exploration-led strategy, chief
executive Aidan Heavey says. On 13 February, the London-listed
independent reported a 4% rise in pretax profit to $1.116
billion largely on the back of a farm down of two-thirds of its
interests in Uganda to China National Offshore Oil Corporation
and Total for about $2.9 billion. Heavey said: "2012 was a year
of major progress. We enhanced the business with a
basin-opening oil discovery in Kenya by adding prospective new
licences in Africa and the Atlantic Margins, refinancing debt,
and partially monetising our Ugandan assets." Such farm-outs
have been a key plank of Tullow's success. "Tullow's key
strategy has been to focus on exploration rather than
development and has partially divested from its Ugandan
licences, preferring to focus on...
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