Tullow Oil plc said that preparations are underway for drilling offshore Guyana possibly in late 2018.
This is according to an operational update the company issued on Wednesday. The company said that it is currently processing seismic data with a view to determining drilling prospects. Tullow has a 30% interest in the Kanuku block and a 60% interest in the Orinduik block offshore Guyana.
“Processing of 6,500 sq km of 3D seismic data acquired during 2017 on the Kanuku and Orinduik licences in Guyana is ongoing to mature and rank identified prospects,” the company said in its press release.
The company said that it is planning to bring drilling forward from the original timeline of 2019. “Preparations are under way to commence drilling in early 2019, although options to bring drilling forward into late 2018 are being considered,” said the release.
Chief Executive of Tullow Paul McDade in a comment said Tullow delivered strong operational and financial performance in 2017 against the backdrop of continued industry volatility.
“The business is expected to generate free cash flow of $0.5 billion, above expectations, due to high levels of operated production and further progress on cost and capital efficiency. There was also material improvement in the Group’s balance sheet, with significantly reduced gearing and an overall reduction in net debt of $1.3 billion. Over 2018 we expect to continue this positive momentum. With our diverse low-cost assets and high-graded exploration portfolio, enhanced by recent licence additions in Côte d’Ivoire and Peru, we have a strong foundation to grow the business and further reduce our debt,” he said.