Tullow Oil has reduced its 2016 capex budget by more than a third below this year’s investments to $1.2 billion, slashing costs as weak oil prices continue to eat into its profit.
The Africa-focused oil company also trimmed its full-year production forecast from its West African fields to 66,000-67,000 barrels of oil per day (bbl/d), down from 66,000-70,000 bbl/d previously.
Tullow Oil said it expects full-year pretax operating cash flow of about $1 billion and net debt of $4.2 billion.
The oil producer is counting on a mid-2016 start-up of its TEN oil fields project in Ghana to boost a balance sheet that has been hit hard by the slump in crude prices since the middle of last year.
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