West Africa-focused oil producer Tullow plans to hedge around 60% of its output one year out, it said on June 12, reiterating it expects its 2023 free cashflow to come in at $100 million at an oil price of $80/bbl.
In March, CFO Richard Miller told Reuters the company planned to hedge around 40% to 50% of its output for the next 12 months.
"Commodity hedging policy (is) reinstated to ensure 60% downside protection for the first year ahead, and 30% for the second year, whilst maintaining full upside exposure for no less than 60%," Tullow said in a trading statement.
Tullow's hedges for this and next year currently stand between $55 and $75 a barrel and it forecasts full-year production to average between 58,000 bbl/d and 64,000 bbl/d with a planned ramp-up of its Jubilee South East wells offshore Ghana in the second half.
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