Tullow Oil to approve first dividend payment since 2014 today

The Chief Executive Officer of Tullow Oil PLC, Paul McDade has disclosed that the board of the company will today ask shareholders to approve the Group’s first dividend payment since 2014.

In a statement issued in advance of the Group’s Annual General Meeting (AGM) which is being held in London at 12 pm April 25, Mr McDade said the new dividend policy of the company is expected to deliver at least $100 million per year to shareholders.

He said the move is a reflection of the financial and operational progress that Tullow has made over the past few years.

He said: "At today’s AGM, the Board will be asking Tullow shareholders to approve the Group’s first dividend payment since 2014. This 2018 final dividend and our new dividend policy, which is expected to deliver at least $100 million per year to shareholders, reflect the financial and operational progress that Tullow has made over the past few years.

"Oil production from our West African portfolio is currently running at 95,000 bopd after a short-term production issue in the first quarter and is due to grow in the second half of the year and beyond. In South America, our exploration team is busy preparing for our exciting exploration campaign in Guyana.”

Tullow lowers output guidance after issues in Ghana

In a trading update, the company also lowered its 2019 output guidance to 90,000-98,000 barrels of oil per day (bpd) after issues at its Ghana operations.

It cited “gas compression constraints on Jubilee during February and a delay in completing the Enyenra-10 production well at the TEN field” as reasons for the downgrade.

“Both issues have now been resolved,” Tullow said.

“The group is currently producing over 95,000 bopd and, with an additional TEN production well due onstream before the half-year, Tullow's net oil production is expected to rise to 100,000 bopd in the second half of 2019.”

Tullow's previous production guidance was 93,000-101,000 bpd.