Tullow Oil not for sale; CEO assures despite company’s teething challenges

The operations of Tullow are going through swings but the company is not up for sale, the Managing Director of Tullow Ghana and Executive Vice President of the USA-based firm, Tullow Oil Plc, Mr Kweku Awotwi, has said.

It is also not looking for buyers contrary to the growing speculations, Mr Awotwi said, in what could help dowse speculations and refocus stakeholders' attention on the future of the company.

Speaking at a media soirée in Accra on December 13, Mr Awotwi said “it is important to explain that we are not in financial crisis. We are not distressed.

Tullow Oil is not for sale as has been reported in some news outlets. But is the company actively looking for buyers? The answer is no, because we believe there is enough strength in the management team to add value to the assets,” he stated.

Nature of equity market

He said the nature of equity markets allowed publicly listed companies to entertain offers but that did not mean the company was up for sale as has been speculated widely.

“We are not for sale. With time the team led by Ms Dorothy Thompson, will show that we know what we are doing and we will deliver the results,” he said.

Last week, news of the resignation of Tullow Oil Plc’s Chief Executive Officer, Mr Paul McDade and Exploration Director, Mr Angus McCoss broke, out sending shares of the company tumbling by more than 60 per cent.

Turning fortunes around

Mr Awotwi noted that the company recorded a 30 per cent reduction in revenues as a result of a cut in production forecasts for the year.

This, he said, coupled with resignations of its key management members led to a substantial reduction in the company’s share price.

He was, however, quick to add that the declined in the share price of the company does not directly impact the company’s ability to fund its operations and commitments.

“Tullow’s barrels in West Africa are profitable and we will deliver at least $150million in free cash flow in 2020.

The group has also committed to undertake capital expenditure (CAPEX) to the tune of about $359 million in 2020 as well, showing that we have the resources to invest,” he said.

On the cuts in revenue, Mr Awotwi said the company would have to limit its spending and overhead costs.

He said Tullow’s priority was to ensure safe and sustainable operations and this will be the company’s focus, going forward.

Media engagement

The annual event is organised for management of the company to interact with journalists as well as provide answers to concerns or issues related to its operations in the country.

Communications and Investor Relations Manager of Tullow Ghana Ltd, Ms Dzifa Bampoh, provided an overview of the company’s engagement with the media during the year.

The company, she said, organised training programmes for journalists to enhance their understanding of the sector and to improve on their reportage.

She said the media remained a key stakeholder and it was therefore important to provide the platform to take feedback and answer questions of concern to the media.