This archive report was first published on 9 December 2019.
December 9, 2019, marked a significant downturn for Tullow Oil as its shares plummeted to nearly half their value following the resignation of Chief Executive Officer Paul McDade. The company also suspended its dividend, a move aimed at generating more cash to support future investment plans and current explorations.
The decline in shares is attributed to the company's failure to meet production targets, largely due to weak performance by its flagship assets in Ghana. A delay in completing a well at the TEN offshore field, which led to a reduction in estimated 2019 oil output, has also contributed to the fall.
Tullow has since reset its production outlook, expecting to produce 87,000 barrels of oil per day this year, with lower production in 2020 of between 70,000 and 80,000 barrels of oil per day.
Tullow Oil is a multinational oil and gas exploration company founded in Ireland, with its headquarters situated in London, United Kingdom. The company has interests in over 150 licenses across 25 countries, with 67 producing fields. It has partnered with Africa Oil and Total in their activities in Kenya.
