Thompson named Tullow interim executive chair following CEO resignation

Dorothy Thompson has been appointed executive chair of Tullow Oil on a temporary basis following the resignation of Paul McDade, chief executive officer, and Angus McCoss, exploration director, from the board “by mutual agreement and with immediate effect,” the company reported. Thompson has served as an independent non-executive director since and chair since 2018. Mark MacFarlane, executive vice-president, East Africa and non-operated, has been appointed as chief operating officer of Tullow Oil in a non-board role. The board has initiated a process to find a new chief executive officer.

Tullow expects 2019 full year net production to average 87,000 b/d of oil and said production performance from TEN and Jubilee fields in Ghana has been significantly below expectations. Group production for 2020 is forecast to average 70,000-80,000 b/d of oil. Group production for the following 3 years is expected to average 70,000 b/d of oil.

On Jubilee field, factors identified in the reduction include significantly reduced offtake of gas by the Ghana National Gas Co. which Tullow makes available at no cost, increased water cut on some wells, and lower facility uptime. Factors at Enyenra (one of the TEN fields) include mechanical issues on two new wells that have limited the well stock available and faster than anticipated field decline.

Independent reserves audits carried out during the year indicate that oil reserves are likely to remain broadly flat at year-end 2019 compared to the previous year-end (excluding the impact of 2019 production), the company said. The audits show increased oil reserves for Jubilee, Ntomme (one of the TEN fields) and the non-operated fields which are largely offset by a 30% decrease in Enyenra reserves.

With the new production forecasts, the company plans to reduce capital expenditure, operating costs, and corporate overheads.