Tullow to End Ghana Drilling Campaign Early
UK producer Tullow Oil has asked to terminate a contract for a drillship that has been working at its oil and gas projects off Ghana over a year and a half early, the vessel's owner, Denmark's Maersk Drilling, said in a statement on March 24.
The Maersk Venturer has been working for Tullow at the Jubilee and TEN fields since February 2018, under a contract signed the previous year. It had been due to continue development drilling until February 2022, but Maersk said it had received a notice of termination from Tullow, bringing the contract to an end in June 2020.
Maersk said its revenue backlog had been reduced by $175mn as a result of Tullow's decision. The vessel owner said it wold take measures to reduce the rig's operating costs after the contract has ended. It added it was still on track to generate $325-375mn in core earnings (Ebitda) in 2020.
Tullow posted an after-tax loss of $1.7bn in 2019, after booking heavily impairments and exploration write-offs. It is currently undergoing restructuring. The company produced less gas than expected at the Jubilee and TEN blocks last year because of operational setbacks.