Africa-focused oil producer Tullow Oil said on Friday it would have to lower its production outlook due to a technical fault that has forced a longer-than-planned shutdown at its Jubilee oilfield off Ghana.
A damaged turret bearing means a scheduled maintenance shutdown will take another two weeks and production flows will take even more time to ramp-up, Tullow said.
“Tullow’s production guidance will be re-issued once the new operating arrangements have stabilised,” the company said.
Shares in Tullow were down 3 percent at 0820 GMT.
Analysts at Stifel estimate the two-week production cut would reduce full-year output by around 1,000-1,500 barrels per day net to Tullow, meaning an impact of more than $10 million on operating cash flow.
Tullow said the issue would not have a material impact on its revenue nor on its TEN oilfields, due to start operating this summer.
The company said it was now using a 250,000-barrel shuttle tanker and a 1-million-barrel storage tanker to assure safe production.
Source: Reuters