Tullow Oil says 45% of $2b planned investment for exploration, appraisal

Tullow Oil Plc says it is allocating 45% of its 2012 global investment funds for exploration and appraisal activities. The oil producer has forecast to spend $2 billion in the year 2012.

The British firm’s 2011 capital expenditure amounted to $1.4 billion excluding acquisitions.

“Based on current estimates and work programmes, total capital expenditure for 2012 is forecast to be $2.0 billion,” said Tullow January 18, 2012.

It added “Approximately 45% of this investment will be allocated to exploration and appraisal.”

The rest of the spending will be for selected development and production activities, according to the company trading on both the Ghana Stock Exchange (GSE) and the London Stock Exchange (LSE).

Tullow states that the cost of Jubilee Phase 1 recompletions, including J-07 will be approximately $400 million gross.

The company’s net debt as at the end of December 31, 2011 was approximately $2.8 billion and the unutilised debt capacity was approximately $825 million while its reserve based lending facility was increased by $0.95 billion during the year with the Group now having total debt facilities of $4.15 billion.

By Ekow Quandzie