Tullow Oil is to take a $1.5 billion writedown after cutting its long-term oil price assumptions by $10 to $65 per barrel, a downgrade to reserves in Ghana and disappointing exploration wells, the company said on Jan. 15.

The writedown at Africa-focused Tullow comes after the exit of CEO Paul McDade in December and the scrapping of the group’s dividend after the group failed to meet production targets due to a weak performance at its assets in Ghana.

Tullow’s shares fell 70% in fourth-quarter 2019. After an initial slump on Jan. 15, the shares were up about 4% at 61.60 pence by 9:00 GMT.

The reduction in oil price assumptions brings Tullow more in line with peers’ expectations, CFO Les Wood said during a conference call.

Tullow said the write-offs included Jethro, Joe and Carapa well costs in Guyana as a result of drilling results and Kenya Block 12A, Mauritania C3, PEL37 Namibia and Jamaica license costs due to the levels of planned future activity or license exits.

“Tullow expects to report pretax impairments and exploration writeoffs of [about] $1.5 billion [c. $1.3 billion post tax],” the company said.

Tullow, a partner of French oil group Total in several projects, has forecast that its 2020 output will shrink to a maximum of 80,000 barrels per day (bbl/d) and fall again to around 70,000 bbl/d in 2021-2023.

Full-year results have been pushed back to March 12 and will include updates on the review of its assets and management structure. Executive Chair Dorothy Thompson told Reuters the announcement of a new CEO might come after that date.

Tullow said after repeated delays to its East African projects, its scheme to truck oil from its Kenyan inland fields to the coast had been suspended due to damaged roads and that there was no breakthrough in Uganda, where it is looking to reduce its stake in its oil fields.

A final investment decision for Kenya is still penciled in for the end of this year, but that target is “challenging,” COO Mark MacFarlane said.

JPMorgan analysts said in a note: “Looking forward, alongside the CEO and other organizational changes we anticipate through 2020, we look for greater clarity on realistic timeframes to progress in both Uganda and Kenya, which hold the key to medium term growth potential.”

To shield against oil price fluctuations, Tullow has hedged 45,000 bbl/d of its 2020 output with an average floor price of $57.28 per barrel. For next year, it hedged 22,000 bbl/d at an average floor price of $52.80 per barrel.

In the fourth quarter Tullow’s shares were hit by production downgrades in Ghana, the oil quality found in a well in the Orinduik Block offshore Guyana and the disappointing size of a well in its Guyanese Kanuku Block.