Shortdata
HLH

Bio

  • Private Investor predominately in oil stocks.

    Currently holding Tullow Oil & Premier Oil.

Companies

  • Premier Oil
  • Tullow Oil

Forum Activity

  • Posts: 237
  • Thanks Received: 2
  • Thanks Sent: 4
  • Followers: 2
  • Following: 3

Joined

  • September 1, 2017
Share Chat Post Distribution Chart
237 Share Chat Posts

PETROFAC LTD » Petrofac and Storegga partnership...

Petrofac and Storegga partner on renewable energy

Petrofac and Storegga Geotechnolgies have joined forces to collaborate on potential business development and project initiatives in carbon capture and storage (CCS), hydrogen and other low carbon projects.

To solidify the commitment, the companies today the signed a Memorandum of Understanding that builds new energy capability and capacity, representing a strategic step in Petrofac’s continued expansion into new and renewable energy.

With an initial focus on the UKCS and North West Europe, the MOU also includes scope for the parties to work together internationally.

John Pearson Petrofac Engineering & Production Services’ Chief Operating Officer, and Global Corporate Development Officer, commented “We are delighted to develop this strategic partnership with Storegga, who have a bold ambition to establish themselves as an operator of low carbon technology projects.”

“Like our existing offshore wind portfolio, CCS, hydrogen and other low carbon technologies require the complex engineering, project management and asset management capability we have developed in oil and gas.”

Nick Cooper, Chief Executive of Storegga Geotechnologies, added, “There is great value in Storegga working with companies such as Petrofac to bolster our engineering and project management capability. This will enable Storegga to accelerate the delivery of our CCS and hydrogen projects in support of the energy transition.”

August 6, 2020

PETROFAC LTD » Petrofac potential upcoming contracts

Petrofac shares details of potential upcoming contracts

Petrofac has shared details of a number of contracts that will potentially be put out to tender over the next year.

Cheryl McRae, subcontract team lead for the energy services firm’s engineering and production services west division, said they have come up with a “rigorous” tender plan in response to the Covid-19 pandemic and collapse in oil and gas prices.

The potential contracts include work for a number of major players in the North Sea, including Shell, Neptune Energy and EnQuest.

Over the last year, Petrofac, which provides duty holder services for numerous North Sea operators, has tendered around £100 million worth of work.

However, bosses are keen to point out that, with uncertainty still rife in the sector, contracts could be subject to change.

Ms McRae said yesterday at an Oil and Gas UK share fair event: "In light of the current circumstances that we’re facing just now, that being the pandemic and the low oil price, we have re-looked at our tender plan."

"We’ve come up with a rigorous plan but it’s not set in stone. There’s every chance these contracts will change going forward and it all depends on the priorities within our organisation."

The contracts that Petrofac plans to tender over the next 12 months and the assets they relate to are:

Ithaca Energy – FPF-1

· Maintenance support for nucelonic services

· Telecom services

· VSAT services



Anasuria Operating Company – Anasuria FPSO

· ESD support

· Chemical management services



EnQuest – Kittiwake

· Structural analysis

· Pump management service

· Electrical support services



Petrogas Neo – GP3

· Quayside services / chartering

· Nitrogen gas equipment rental

· Rental of methanol bund and compressors

· Lube oil analysis and tank hire

· Rental services

· Provision of piping vibration and stress management analysis

· Provision of flow metering computer systems support

· Provision of sample analysis and offshore chemist services

· Provision of process control and instrumentation consultancy

· Annual pumps health check

· Helideck netting maintenance and certification

· Door maintenance

· Overhaul and service of diesel engines

· Firefighting equipment and maintenance

· Battery maintenance and testing

· Flexible hose assembly inspections and remedials

· UPS maintenance services

· Corrosion management services



ENI – Hewett

· Underwater services contract 2020-23

· SNS X Asset independent verification and recertification of lifting equipment services

· SNS X Asset provision of electrical and instrumentation services



ENI – Liverpool Bay ISP

· Ignition control

· Protection system

· Marine integrity propulsion system

· Structural integrity scopes



Multiple clients – Corporate, Master Services Agreement

· Piping bulks



E&C – Various Assets

· Manual valves



Neptune Energy – Cygnus Alpha

· Biocide injection package

· Oxygen scavenger injection package



Repsol Sinopec Resources UK – Montrose/Bleo Holm

· Shutdown/control valves

· Pig launcher/receiver

· Heat exchangers

· Circulation pumps

· Module fabrication

· Expansion vessels



Shell – Clipper

· Nitrogen injection package



Multiple clients – Corporate (industrial services)

· Coating – paint supply

· Insulation – material supply

· Blasting – material supply

· Passive fire protection – material supply

· Composite repair

· Scaffold – Access platforms

· Asbestos management



Multiple clients – Corporate

· Supply of stationary and office consumables

· Provision of occupational health and medical services

· External legal council services

August 5, 2020

TULLOW OIL PLC » Trading Statement

TULLOW OIL PLC
TRADING STATEMENT AND OPERATIONAL UPDATE
29 JULY 2020 - Tullow Oil plc (Tullow) issues this statement to summarise recent operational activities and to provide trading guidance in respect of the financial half year to 30 June 2020. This is in advance of the Group's Half Year Results, which are scheduled for release on Wednesday 9 September 2020. The information contained herein has not been audited and may be subject to further review and amendment.

Rahul Dhir, Chief Executive Officer, Tullow Oil plc, commented today:
"Since becoming CEO on 1 July, I have been impressed by the quality of Tullow's people and the potential of our assets and I am confident that we can build Tullow into a competitive and successful business once again. Despite the challenging external environment in the first half of the year, Tullow has performed well; delivering production in line with forecast, agreeing the sale of the Ugandan assets and re-shaping the Group's structure and cost base. In the second half of 2020 our focus will remain on continuing to deliver safe and reliable production from West Africa, reducing debt and building a cost effective and efficient organisation that can compete in a low oil price environment."

OPERATIONAL UPDATE





The impact of COVID-19 has been managed safely across our business with no impact on our operated production.



Group working interest production in the first half of 2020 averaged 77,700 bopd in line with expectations; full year guidance has been narrowed to 71,000-78,000 bopd reflecting continued good performance across the portfolio.



In the first half of 2020, gross Jubilee production averaged 84,700 bopd (net: 30,000 bopd), gross TEN production averaged 50,900 bopd (net: 24,000 bopd) and net production from the non-operated portfolio was 23,700 bopd.



Ghana operational performance has been strong in the first half with uptime on both FPSOs in excess of 95 per cent.



Completion operations on the Ntomme-9 production well at TEN are ongoing; the well is due onstream in August.



The impact of COVID-19 on the Kenya work programme and fiscal framework has led the Joint Venture to call Force Majeure on its licences which will delay FID and impact the ongoing farm-down process. Constructive discussions are ongoing with Government regarding next steps.



In Suriname, the drilling of the Goliathberg-Voltzberg North prospect (GVN-1) in Block 47 is planned for the first quarter of 2021. A rig is expected to be contracted shortly for this Upper Cretaceous prospect.



FINANCIAL UPDATE





Revenue for the first half of 2020 is expected to be c.$0.7 billion with a realised oil price of $52/bbl, including hedge receipts of $131 million.



At 30 June 2020, net debt is expected to be c.$3.0 billion and liquidity headroom and free cash are expected to be c.$0.5 billion; full year free cash flow is forecast to break even at the current forward curve.



Capital and decommissioning expenditure guidance for 2020 remains unchanged at c.$300 million (1H20: $192 million) and c.$65 million (1H20: $38 million) respectively.



As a result of lower near-term oil price forecasts, and a revision in the Group's long-term oil price assumption from $65/bbl to $60/bbl, the Group expects material impairment and exploration write-offs to be recorded at the half-year in the range of $1.4-1.7 billion (pre-tax).



At 28 July, 60 per cent of 2020 sales revenue hedged with a floor of $57/bbl, 44 per cent of 2021 sales revenue hedged with a floor of $51/bbl.



UGANDA TRANSACTION UPDATE





Sale of Ugandan assets for $500 million in cash on completion and $75 million in cash following FID, plus post first oil contingent payments, expected to complete before year-end.



Shareholder approval of the transaction confirmed at the General Meeting on 15 July with over 99 per cent of the 56 per cent votes cast in favour.



Transaction completion remains subject to the Government of Uganda and the Uganda Revenue Authority entering into a binding Tax Agreement that reflects the agreed tax principles and the Government of Uganda approving the transfer of Tullow's interests and Block 2 Operatorship to Total.



This transaction represents an important first step to raising in excess of $1 billion proceeds from portfolio management in what continues to be a challenging external environment for asset sales and farm downs.



SENIOR MANAGEMENT





Rahul Dhir joined Tullow as Chief Executive Officer on 1 July 2020.



Dorothy Thompson will resume her role as Non-Executive Chair of the Board after a short transitional period.



Mike Walsh has been appointed as General Counsel & Director, Risk, Compliance & IS, effective 3 August 2020, reporting to the CEO. Mike joins Tullow from Delonex Energy Limited where he was General Counsel.



PRODUCTION GUIDANCE



Group average working interest production

H1 2020 actual (bopd)

FY 2020 forecast (bopd)

Ghana

54,000

51,600

Jubilee

30,000

28,100

TEN

24,000

23,500

Equatorial Guinea

5,000

4,700

Gabon

16,800

16,700

Côte d'Ivoire

1,900

2,000

Oil production

77,700

75,000

https://www.londonstockexchange.com/news-article/TLW/trading-statement/14632422

July 29, 2020

PETROFAC LTD » What factors will move the Petrofac share price?

Shares in Petrofac (LON:PFC) are currently trading at 170.3 but a key question for investors is how the economic uncertainty caused by Coronavirus will affect the price. One way of making that assessment is to examine where its strengths lie...

The market price in Petrofac shares has moved by 14.3% over the past three months. In volatile markets, many investors are keen to buy what they think are cheap stocks - but it's essential to recognise the difference between a genuine bargain and a value trap. Often, the quality of the stock makes all the difference.

The good news is that Petrofac scores well against some important financial and technical measures. In particular, it has strong exposure to two influential drivers of investment returns: high quality and a relatively cheap valuation.

Buying quality at a fair price

Good quality stocks are loved by the market because they're more likely to be solid, dependable businesses. Profitability is important, but so is the firm's financial strength. A track record of improving finances is essential.

One of the stand out quality metrics for Petrofac is that it passes 6 of the 9 financial tests in the Piotroski F-Score. The F-Score is a world-class accounting-based checklist for finding stocks with an improving financial health trend. A good F-Score suggests that the company has strong signs of quality.

While quality is important, no-one wants to overpay for a stock, so an appealing valuation is vital too. With a weaker economy, earnings forecasts are unclear right across the market. But there are some valuation measures that can help, and one of them is the Earnings Yield.

Earnings Yield compares a company's profit with its market valuation (worked out by dividing its operating profit by its enterprise value). It gives you a total value of the stock (including its cash and debt), which makes it easier to compare different stocks. As a percentage, the higher the Earnings Yield, the better value the share.

A rule of thumb for a reasonable Earnings Yield might be 5%, and the Earnings Yield for Petrofac is currently 15.0%.

In summary, good quality and relatively cheap valuations are pointers to those stocks that are some of the most appealing to contrarian value investors. It's among these shares that genuine mispricing can be found. Once the market recognises that these quality firms are on sale, those prices often rebound.

July 23, 2020

PETROFAC LTD » Salalah LPG extraction project - July 2020

Now in its final stages, work continues to progress well at the Salalah LPG extraction project in Oman for OQ LPG (SFZ) LLC.

In numbers, this video shows the progress the Salalah team has made. Well done to everyone involved👏.

Find out more about the project: https://bit.ly/2E5Yev5

Watch the video
https://www.youtube.com/watch?v=-0KYWCwXuDQ&pp=wgIECgIIAQ==

#PetrofacOman

July 22, 2020

TULLOW OIL PLC » Result of Meeting

Result of Meeting
RNS Number : 1130T
Tullow Oil PLC
15 July 2020

TULLOW OIL PLC
SHAREHOLDER APPROVAL

15 JULY 2020 - Tullow Oil plc (Tullow) announces that at its General Meeting held earlier today, the resolution set out in the Notice of General Meeting put to the General Meeting seeking approval for the proposed sale of its entire interests in Blocks 1, 1A, 2 and 3A in Uganda and the proposed East African Crude Oil Pipeline System to Total (the "Transaction"), as described in the circular to shareholders dated 18 June 2020 (the "Circular") was passed by the requisite majority. The resolution put to the General Meeting was voted on by way of a poll and the results are set out below.

The Transaction also remains subject to a number of other conditions, including customary government approvals and the execution of a binding tax agreement with the Government of Uganda and the Uganda Revenue Authority that reflects the agreed tax principles previously announced. Subject to the satisfaction of the conditions, the Transaction is expected to complete in the second half of 2020.

Votes FOR
788,781,164 99.93%

Votes AGAINST
565,765 0.07%

Notes:

(1) Proxy appointments which gave discretion to the Chair of the General Meeting have been included in the "For" total of the resolution.

(2) A "Vote Withheld" is not a vote in law and is not counted in the calculation of the proportion of votes "For" or "Against" the resolution, nor in the calculation of the proportion of "Percentage of ISC voted" for the resolution.

(3) The percentage of votes "For" and "Against" the resolution is expressed as a percentage of votes validly cast for the resolution.

(4) The number of shares in issue at 6.00 p.m. on 13 July 2020 (being the voting record date for the General Meeting) was 1,411,003,726 ordinary shares of 10 pence each (the "Ordinary Shares") and at that time, Tullow did not hold any Ordinary Shares in treasury. The proportion of "Percentage of ISC voted" for the resolution is the total of votes "For" and "Against" in respect of the resolution expressed as a percentage of the ISC as described in this note (4).

(5) In accordance with LR 9.6.2, a copy of the resolution passed at the meeting has been submitted to the FCA's National Storage Mechanism, and will shortly be available to view at https://data.fca.org.uk/#/nsm/nationalstoragemechanism. The full text of the resolution passed at the General Meeting can be found in the Notice of General Meeting forming part of the Circular, which is available for inspection at the National Storage Mechanism and also on the Company's website at http://www.tullowoil.com

July 15, 2020

TULLOW OIL PLC » Tullow shutters Kenya export business

Tullow Oil has announced the end of its Early Oil Pilot Scheme (EOPS) in Kenya, declaring the project to be a success.

The contract formally concluded on June 2 with just one cargo lifted. The pilot scheme involved five wells in the Amosing and Ngamia fields, in Blocks 13T and 10BB. Exports peaked at 2,000 barrels per day. Trucks moved crude by road from Turkana to Mombasa.

Kenyan crude was sold for the first time ever in mid-2019. A cargo of 240,000 barrels were lifted from the port August 26, 2019. The sale raised $13.4 million in revenues. The Celsius Riga tanker transported the crude to ChemChina.

While the EOPS scheme officially ran for two years, it was cut short. Trucking was suspended in the fourth quarter of 2019 as a result of difficult weather. At the time Tullow published its final results for the year, in March, the EOPS was still suspended.

The EOPS provided data, logistical and operational experience and training, Tullow said, which will help the project move towards full-field development.

Concrete demonstration of the impact of the EOPS came in upgrade works carried out on roads and bridges.

There were also socio-economic benefits of the work. The EOPS had given local companies an opportunity to participate in oil transportation. The work involved 30 trucks, six light vehicles and a bus. Employment went to 35 truck drivers, including a number of female drivers.

Headwinds

Tullow is working on plans to sell a stake in its Kenyan assets. The company had aimed to reach a final investment decision (FID) on the project by the end of 2020 but it is clear this is now extremely unlikely.

Tullow suspended work in Kenya in May, under a force majeure declaration.

The reserves in Turkana remain viable, Tullow said. The next steps include environment and social impact assessment (ESIA) work and project definition.

While coronavirus has had an impact on operations, Tullow has also found fault with some moves by the government. In particular, amendments to the tax law, approved in late April, moved the rate of VAT from zero for oil exploration equipment to 14%

July 14, 2020

PREMIER OIL PLC » Jefferies say Premier Oil share price set to soar

Jefferies analysts say Premier Oil share price set to soar ahead of earnings update.

The UK-based oil and gas company will release its latest trading and operations update on Wednesday 15 July, with the stock suffering heavy losses due to a crash in oil prices amid weakening demand due to the Covid-19 pandemic.



Premier Oil will release its latest trading and operations update on Wednesday 15 July, with the stock suffering heavy losses due to a crash in oil prices amid weakening demand due to the Covid-19 pandemic.

But thanks to national lockdowns beginning to ease and OPEC+ led production cuts, oil prices have started to stabilise and found support at $40 - $42 range per barrel.

In fact, the secretary general of OPEC said on Monday that he believes that oil markets are moving closer to balance ahead of the group meeting with Russia to decide whether or not to ease production cuts from August.

Premier Oil has continued to struggle, however; with the stock falling 24% since hitting a 15-week high of 53p back on 23 June and looking likely to continue its trend lower this week.

Premier Oil is trading at 41p per share at the time of publication.
Analysts at Jefferies believe Premier Oil shares are set to soar

Even though Premier Oil continues to see its share price struggle amid challenging market conditions, analysts at Jefferies remain optimistic about the stock.

Analysts at the US-based investment bank reiterated their ‘buy’ rating for Premier Oil on Monday and set a target price of 68p per share for the stock – implying a potential upside of 65%.
Premier Oil: Technical Analysis

Shares in Premier Oil tumbled by nearly 90% from their peak at £120.85 in January to the trough at £13 in mid-March. But since hitting those lows they have recovered over 200 percent, but are still down 60% on the year.

Premier Oil stumbled into resistance at the 38.2% Fibonacci retracement line at £54.21 and came close to testing the 23.6% fib line at £38.47 last week, according to Victoria Scholar, market analyst and presenter at IG.

‘The psychological £40 mark looks to be a key support level that the stock should try to remain above if the last few month’s positivity is to remain on track,’ she said. ‘However June provided two forewarnings of potential weakness ahead, firstly with a sell signal from the RSI dropping below 70 and secondly with negative divergence with the MACD histogram.’

‘But the stock is yet to break below the ascending trendline of support, which would be bearish for its outlook,’ Scholar added.

July 14, 2020

TULLOW OIL PLC » Kenya, Tullow Oil divorce gets messy and noisy

Kenya is on the warpath with Tullow Oil over the firm’s decision to exit the country.

Members of Parliament have called for a forensic audit of the company’s books of account over questionable expenditures.

Tullow Oil is accused of using derailing tactics in the implementation of the country’s oil project as it seeks to exit the project and country, which has prompted investigations into the firm’s decision to invoke force majeure.

At the same time, legislators are questioning the $2.04 billion compensation bill the British exploration firm is demanding from the government as expenditure in the country since it discovered crude in 2012.

Despite ordering the petroleum cost recovery audit that was undertaken by audit firm Swale House Partners, the government has refused to make the report public, only maintaining that the auditors found that Tullow spent $1.6 billion while exploring oil over a six-year period.

"Parliament must scrutinise all the expenditures to ascertain they are genuine because it’s our duty to protect Kenyan taxpayers," David Gikaria, chairman of parliamentary Energy Committee, told The EastAfrican.

The woes facing Tullow, the operator of the Kenyan project on behalf of joint venture partners Total, Africa Oil and the Kenya government, have deepened after Total refused to commit its share of budget for the current financial year. Tullow is the majority shareholder in Blocks 10 BA, 10 BB and 13T in the South Lokichar Basin with a 50 per cent stake, with Africa Oil holding 25 per cent.

The EastAfrican has established that Tullow declared force majeure on the Kenyan project without consultations with the Ministry of Petroleum, and the government is seeking explanations on what informed the company’s decision.

The parliamentary energy committee is also carrying out an independent probe and has accused the company of "dishonesty" over its operations in the country including failure to explain expenditures of the recently expired Early Oil Pilot scheme and how revenues accrued from the scheme were shared.

Last week, the committee summoned Tullow Oil officials led by Kenya country manager Martin Mbogo seeking to unravel the firm’s muddled operations that are shrouded in secrecy but failed to get satisfactory answers.

"Tullow has not been honest and wants to run away from its responsibilities. Invoking force majeure throws Kenya’s project off track and only defers the country’s dreams of commercial oil exportation," said Mr Gikaria.

In May, Tullow invoked force majeure on the Kenyan project, meaning the company is unable to continue performing its contractual obligations.

Kenya’s Petroleum Ministry Principal Secretary Andrew Kamau said the government is not convinced by Tullow’s decision and has demanded a detailed report.

"We want Tullow to tell us the thinking behind it and what it means for project oil Kenya," he told The EastAfrican.

Tullow’s invocation of force majeure puts Kenya’s plans to become an oil exporting nation in limbo.

Kenya is already behind schedule for most of the milestones, including signing of the final investment decision that was slated for this year -- which now looks highly unlikely -- and securing of funding for the crude pipeline, something that further shrouds the viability of the Kenyan crude project.

It has emerged that Total’s refusal to commit more money into the Kenyan project and standoff over total expenditures is part of the reason the firm opted to put a break on the Kenyan project to avoid further expenditures at a time when its parent company is facing mounting challenges not only in Kenya but also in Ghana and Guyana.

Though Tullow’s expenditures are cost recoverable when Kenya starts commercial exportation of crude, the firm is desperately seeking a route out of Kenya through disposing its entire stake rather than commit more funds.

The company’s planned exit, however, is being complicated by a valuation of the Kenyan assets that are estimated to be worth between $1.2 billion to $2 billion.

In April the firm managed to exit Uganda after reaching an agreement with Total that saw it transfer its entire interests in Blocks 1, 1A, 2 and 3A and the proposed East African Crude Oil Pipeline at a cost of $575 million.

The deal in Uganda lifted the spirits of Tullow in a year that is has taken a severe battering due to the Covid-19 pandemic that crashed crude oil prices and resulted in the firm posting a $1.7 billion loss in the year ending March, cutting its workforce by 20 per cent and gravitating towards going bust with its share price at the London Stock Exchange on a free fall.

The firm’s share price, which nosedived to a low of 20p in April, is on a slow recovery trading at 30.6p on July 1.

July 6, 2020

TULLOW OIL PLC » Rahul Dhir starts his new CEO job at TLW, today

Tullow Oil plc (Tullow) is pleased to announce the appointment of Rahul Dhir as Chief Executive Officer and an Executive Director of the Group. Rahul will take up his appointment from 1 July 2020 and Dorothy Thompson, currently Executive Chair of Tullow, will return to her position as Non-Executive Chair after a limited period of handover.

Rahul brings extensive leadership experience in oil and gas to Tullow. He is currently CEO of Delonex Energy, an Africa-focused oil and gas company that he founded in 2013. Under his leadership, Delonex has delivered low-cost drilling and seismic operations along with leading social and environmental performance in sub-Saharan Africa. In Chad, the company has achieved material exploration success and discovered substantial oil resources. Delonex has also delivered exploration campaigns in Ethiopia and Kenya where Delonex operates Block 12A with Tullow as a non-operating partner.

Prior to establishing Delonex, Rahul served as Managing Director and CEO of Cairn India from its IPO in 2006 until 2012. During Rahul’s tenure, Cairn India delivered operated production of over 200,000 barrels of oil per day with operating costs of less than $5 per barrel of oil. Cairn India also successfully delivered over $5 billion of development projects including the world’s longest heated pipeline at a finding and development cost of less than $5 per barrel of oil.

Rahul started his career as a Petroleum Engineer, before moving into investment banking where he led teams at Morgan Stanley and Merrill Lynch, advising major oil & gas companies on merger and acquisition and capital market related issues. Rahul is a UK citizen and was educated at the Indian Institute of Technology (BTech), the University of Texas (MSc) and the Wharton School (MBA).

Dorothy Thompson, Executive Chair of Tullow Oil Plc, commented today:
“I am delighted to welcome Rahul to Tullow and am very pleased that he has accepted the position of CEO. His oil & gas, financial and African experience combined with his record of strong leadership made him the stand-out candidate for the Board. I look forward to Rahul joining Tullow in July and working with him closely in the coming years.”

Rahul Dhir, Chief Executive Officer-designate of Tullow Oil plc, also commented today:
“I am very excited at the opportunity to lead Tullow and re-establish it as an iconic company in our industry. The company has high-quality assets and great people. It also has a unique position in Africa, built on a proven track record of responsible operations, strong relationships and a commitment to sustainability. I am looking forward to working with the team and the Board to re-build an exceptional business.”

July 1, 2020

TULLOW OIL PLC » Sale of entire stake in Uganda to Total for $575m

News Release



Tullow agrees sale of its entire stake in the Lake Albert
Development Project in Uganda to Total for US$575 million in cash
plus post first oil contingent payments



23 April 2020 - Tullow Oil plc (Tullow) is pleased to announce that it has agreed the sale of its assets in Uganda to Total with an effective date of 1 January 2020.



· Cash payments of US$500 million on deal completion and US$75 million at Final Investment Decision (FID)

· Contingent payments linked to oil price to be paid after production commences

· Principles on tax treatment of the Transaction agreed with Uganda Revenue Authority (URA)

· Transaction marks first step in portfolio management programme to raise in excess of US$1 billion

· Proceeds to be used to reduce Tullow's net debt, strengthening the balance sheet and moving Tullow towards a more conservative capital structure

· Completion subject to a number of conditions, including approval by Tullow's shareholders, entering into a binding tax agreement with the Government of Uganda and the URA that reflects the agreed tax principles and customary government and other approvals; completion of the Transaction is expected in the second half of 2020

Read the full RNS here...
https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/TLW/14513135.html

April 23, 2020

TULLOW OIL PLC » Tullow Oil plc - AGM Trading Update

RNS Number : 5704K
Tullow Oil PLC
23 April 2020

Tullow Oil plc - AGM Trading Update

23 April 2020 - Tullow Oil plc (Tullow), issues the following update ahead of its Annual General Meeting which is being held via an audio cast at 12pm today. Details of how shareholders can join the Group's AGM can be found at the end of this update and on www.tullowoil.com/AGM. This morning Tullow has issued a second press release detailing the sale of its Uganda interests to Total.

Dorothy Thompson, Executive Chair, Tullow Oil plc, commented today:

"I am very pleased with the material progress Tullow has made in the first quarter of this year given the challenges facing the Group after our performance in 2019, the COVID-19 pandemic and recent very low oil prices. This week, we have announced two significant milestones with the agreement to sell our Uganda interests to Total for $575 million in cash and the appointment of our new CEO, Rahul Dhir. The sale of our Uganda assets is an excellent first step towards our target of raising over $1 billion of proceeds to reduce net debt, strengthen the balance sheet and secure a more conservative capital structure.

"Operationally, we are delivering well against our production targets following improvements put in place by our asset team in Ghana and we have made significant changes to the structure and cost base of our organisation. Finally, the recent successful redetermination of our Reserves Based Lending facility (RBL) has underpinned Tullow's liquidity and the strength of our assets.

"I would also like to thank Steve Lucas, who retires from Tullow today at the end of the AGM. Steve has served on Tullow's Board for eight years and has provided great insight, support and expertise as a Non-Executive Director and as Chair of the Audit Committee."

Trading update
Highlights

· Sale of Uganda interests to Total for $575 million in cash announced this morning; first step in raising >$1 billion in proceeds

· Appointment of new Chief Executive Officer, Rahul Dhir, who will join Tullow from Delonex in July 2020

· Group production delivering in line with expectations in the first quarter of 2020

· Successful redetermination of RBL facility confirming headroom of c.$700 million at start of second quarter

· Thorough business review completed resulting in a smaller, more efficient organisation and reduced cost base

Operational

· Group production in the first quarter of 2020 averaged 75,800 bopd, in line with expectations; Tullow's full year guidance remains 70,000 - 80,000 bopd

· Gross production from the Jubilee field averaged 79,200 bopd (net: 28,100 bopd) in the first quarter of 2020. The field continues to perform well with improved uptime and reliable gas offtake allowing recent rates above 90,000 bopd gross

· Gross production from the TEN fields averaged 51,700 bopd (net: 24,400 bopd) in the first quarter of 2020. Work on the Ntomme-9 production well continues and the well is expected to come on stream in June

· Production from the Group's non-operated portfolio averaged 23,300 bopd in the first quarter of 2020, in line with expectations and taking into account planned shut downs at Espoir in Côte d'Ivoire and Ruche in Gabon

· In exploration, Tullow continues to pursue potential farm downs of its exploration licences to reduce equity interests ahead of drilling and further reduce costs

COVID-19

Tullow continues to manage its operations carefully in light of COVID-19 and the Group is adhering to procedures and restrictions put in place by its host countries:

· Production operations in West Africa have so far not been affected. In Ghana, Government exemptions have been made to allow charter flights for oil and gas workers into the country, enabling crew changes to occur. Tullow is then requiring all personnel to self-isolate in Ghana for two weeks before transferring to its FPSOs to ensure that the risk of a COVID-19 outbreak offshore is minimised

· In Kenya, a number of key workstreams have been suspended due to COVID-19 restrictions and while focus remains on the critical activities required for a Final Investment Decision (FID), Tullow will continue to monitor the impact these restrictions may have on the FID target

· In exploration, seismic acquisition continues in Argentina but the seismic programme in Côte d'Ivoire has been interrupted after Force Majeure was declared by the service provider in light of COVID-19 restrictions

Financial

· Tullow has agreed to sell its entire stake in the Lake Albert Development Project in Uganda to Total for $575 million in cash plus post first oil contingent payments (see separate announcement released this morning)

· Successfully completed RBL facility redetermination, confirming $1.9 billion of debt capacity and headroom of c.$700 million at start of second quarter

· Further $85 million of cash savings identified to reduce capex to c.$300 million and decommissioning spend to c.$65 million

· 60% of 2020 sales revenue hedged with a floor of c.$57/bbl and 40% of 2021 sales revenue hedged with a floor of c.$53/bbl

· First quarter 2020 realised oil price of c.$56/bbl including the benefit of c.$27 million of net hedge receipts during the period

· Completion of sale of Uganda assets will be the first step towards raising in excess of $1 billon proceeds through portfolio management; continued focus on progressing options to achieve this target

Board & Management

· Appointment of Rahul Dhir as Chief Executive Officer and an Executive Director of the Group from 1 July 2020. Rahul joins Tullow from Delonex Energy, where he was CEO of the Africa-focused oil and gas company. Prior to Delonex, Rahul served as Managing Director and CEO of Cairn India

· Steve Lucas will step down from the Board following today's AGM and Martin Greenslade will take over as Chair of the Audit Committee

Read the full RNS here...
https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/TLW/14513139.html

April 23, 2020

TULLOW OIL PLC » Tullow Oil Appointment of Rahul Dhir as CEO

RNS Number : 2660K
Tullow Oil PLC
21 April 2020

News Release

Appointment of Rahul Dhir as CEO of Tullow Oil plc

21 April 2020- Tullow Oil plc (Tullow) is pleased to announce the appointment of Rahul Dhir as Chief Executive Officer and an Executive Director of the Group. Rahul will take up his appointment from 1 July 2020 and Dorothy Thompson, currently Executive Chair of Tullow, will return to her position as Non-Executive Chair after a limited period of handover.

Rahul brings extensive leadership experience in oil and gas to Tullow. He is currently CEO of Delonex Energy, an Africa-focused oil and gas company that he founded in 2013. Under his leadership, Delonex has delivered low-cost drilling and seismic operations along with leading social and environmental performance in sub-Saharan Africa. In Chad, the company has achieved material exploration success and discovered substantial oil resources. Delonex has also delivered exploration campaigns in Ethiopia and Kenya where Delonex operates Block 12A with Tullow as a non-operating partner.

Prior to establishing Delonex, Rahul served as Managing Director and CEO of Cairn India from its IPO in 2006 until 2012. During Rahul's tenure, Cairn India delivered operated production of over 200,000 barrels of oil per day with operating costs of less than $5 per barrel of oil. Cairn India also successfully delivered over $5 billion of development projects including the world's longest heated pipeline at a finding and development cost of less than $5 per barrel of oil.

Rahul started his career as a Petroleum Engineer, before moving into investment banking where he led teams at Morgan Stanley and Merrill Lynch, advising major oil & gas companies on merger and acquisition and capital market related issues. Rahul is a UK citizen and was educated at the Indian Institute of Technology (BTech), the University of Texas (MSc) and the Wharton School (MBA).

Dorothy Thompson, Executive Chair of Tullow Oil Plc, commented today:

"I am delighted to welcome Rahul to Tullow and am very pleased that he has accepted the position of CEO. His oil & gas, financial and African experience combined with his record of strong leadership made him the stand-out candidate for the Board. I look forward to Rahul joining Tullow in July and working with him closely in the coming years."

Rahul Dhir, Chief Executive Officer-designate of Tullow Oil plc, also commented today:

"I am very excited at the opportunity to lead Tullow and re-establish it as an iconic company in our industry. The company has high-quality assets and great people. It also has a unique position in Africa, built on a proven track record of responsible operations, strong relationships and a commitment to sustainability. I am looking forward to working with the team and the Board to re-build an exceptional business."

This announcement includes inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014 and is being released on behalf of Tullow by Adam Holland, Company Secretary.

April 21, 2020

PETROFAC LTD » DALMA PROJECT UPDATE

RNS Number : 8559J
Petrofac Limited
16 April 2020

Press Release

16 April 2020

DALMA PROJECT UPDATE

Petrofac Ltd ("Petrofac" or "the Company") announces that its Petrofac Emirates joint venture has received notice of termination from Abu Dhabi National Oil Company (ADNOC) of two recently awarded contracts for the Dalma Gas Development Project. Petrofac is committed to working with ADNOC over the coming weeks to explore alternative options to deliver this project in a way that supports their strategic objectives within the current challenging environment.

The project, worth around US$1.65billion, and awarded in February 2020, comprised two packages. Petrofac Emirates' portion of the scope of work is valued at US$1.5billion.

Petrofac continues to progress execution of its remaining Group backlog of around US$7billion as planned and is still progressing with tendering for major contracts in Abu Dhabi. However, it anticipates this development may have an impact on the timing of their awards.

April 16, 2020

PETROFAC LTD » New Petrofac Contract

Sharjah National Oil Corporation (SNOC), today announced that its Moveyeid Gas Storage Surface Facility Project has been awarded to Petrofac Facilities Management International Limited

March 24, 2020

PETROFAC LTD » Petrofac awarded US$40 million project

Petrofac awarded US$40 million project by Sharjah National Oil Corporation

Petrofac’s Engineering & Production Services division (EPS) has been awarded an engineering, procurement, construction and commissioning (EPCC) contract by Sharjah National Oil Corporation (SNOC), worth around US$40 million, for a project in the United Arab Emirates.

The award demonstrates delivery against EPS’s strategy to secure smaller greenfield and brownfield EPC projects, utilising its footprint and infrastructure in existing core markets.

Mani Rajapathy, Managing Director, EPS East, commented:
“We are delighted to be awarded this contract by Sharjah National Oil Corporation, a longstanding Petrofac client that we have worked with successfully for many years. The award is important strategically as EPS looks to develop its track record in smaller greenfield and brownfield EPC projects. It also leverages Petrofac’s best-in-class expertise and experience in upstream gas and represents another win in one of our core markets of Sharjah and the UAE. We look forward to delivering a safe and successful project for SNOC.”

Petrofac has been present in the UAE since 1991. The Group employs around 3,000 people in country, many of whom are based at Petrofac’s major operational centre in Sharjah.

February 20, 2020

PETROFAC LTD » US$1.65 BILLION CONTRACTS FOR ABU DHABI MEGA PROJ

PETROFAC AWARDED US$1.65 BILLION CONTRACTS FOR ABU DHABI MEGA PROJECT

Petrofac Emirates has been awarded two contracts, together worth around US$1.65 billion with Abu Dhabi National Oil Company (ADNOC) in the United Arab Emirates.

The engineering, procurement (including novated long lead items), construction, transportation, offshore installation and commissioning contracts are for ADNOC's Dalma Gas Development Project. The work scope encompasses offshore packages at Arzanah island and surrounding offshore fields, located around 140 km off the north-west coast of the Emirate of Abu Dhabi.

The first package, valued at US$1.065 billion, is for gas processing facilities at Arzanah island. Under the terms of the 33-month lump-sum contract awarded to Petrofac, the scope of work includes inlet facilities with gas processing and compression units, power generation units, utilities and other associated infrastructure.

For the second package, valued at US$591 million, Petrofac is leading a Joint Venture with SapuraKencana HL Sdn. Bhd. Abu Dhabi. Under the terms of the 30-month lump-sum contract, the scope of work includes three new well-head platforms, removal and replacement of an existing topside, new pipelines, subsea umbilicals, composite and fibre optic cables.

The Dalma project is a key part of the Ghasha ultra-sour gas concession which is central to ADNOC's strategic objective of enabling gas self-sufficiency for the UAE.

George Salibi, Chief Operating Officer - Engineering & Construction, commented: "Petrofac has a strong track record in the UAE, with a presence here since 1991 and around 3,000 staff in country. We are fully committed to supporting continued and sustainable investment in Abu Dhabi's oil and gas industry through our strategic focus on maximising local delivery, and are pleased that our approach will generate substantial In-Country Value for the local economy. These latest contract awards build on our existing relationship with ADNOC Group companies and we look forward to delivering this mega project in a safe, successful and sustainable manner."

Established in the UAE in 1991, with operational centres in Abu Dhabi and Sharjah, Petrofac has executed 11 major EPC projects in-country to date. Recent projects include the Upper Zakum UZ750 project, Qusahwira Field Development Phase II, the Satah Al Razboot (SARB) Package 3, the contract for expansion of compression facilities at the Bab field and development of the Bab Habshan-1 project.

Ends

February 18, 2020

TULLOW OIL PLC » Marina-1 well result

Tullow Oil plc (Tullow) announces that the Marina-1 exploration well, drilled on Z-38 licence offshore Peru, has reached Total Depth and has not encountered significant hydrocarbons. The well tested the La Cruz and Mal Pelo formations where minor gas shows were encountered however there were no indications of hydrocarbons in the primary targets in the Tumbes formation.

The Stena Forth drillship drilled the Marina-1 well to a Total Depth of 3,022 metres in 362 metres of water and the well will now be plugged and abandoned.

Karoon Energy is the operator of the Marina-1 well through its wholly owned subsidiary, KEI (Peru Z‐38) Sucursal del Peru and has a 40% operating equity interest. Tullow Oil holds a 35% interest with Pitkin Petroleum holding the remaining 25%.
Mark MacFarlane, Chief Operating Officer, commented today:

“This is the first ever well in the deep-water section of the under-explored Tumbes basin. We will now integrate the important well information with the seismic data that we are currently reprocessing and update our prospect inventory for blocks Z-38 and Z-64. Tullow is building an extensive exploration position in Peru and, while this result is not what we had hoped for, we remain positive about Peru’s wider offshore exploration potential.”

February 17, 2020

TULLOW OIL PLC » Total Chief dismisses Tullow Oil takeover idea

ABERDEEN, Scotland (Reuters) - Total Chief Patrick Pouyanne dismissed the idea it might buy its partner in East Africa and Guyana, Tullow Oil, whose share price slumped to 19-year lows in December over a string of bad news, stoking takeover speculation.

Total is a partner in all growth markets for Tullow Oil whose market capitalisation shrank to around 633 million pounds as of Wednesday from 3.28 billion pounds in September. It is slashing its workforce and restructuring its portfolio.

Amid industry speculation about a potential Tullow takeover target, Pouyanne told Reuters when asked whether Total might buy Tullow: "Stop dreaming... No".

As of late 2019, Tullow was saddled with $2.8 billion in debt, a hangover from the last oil price crash which saw Brent crude futures plummet to below $30 a barrel in 2016.

High debts can make buying assets a more attractive option than a corporate sale.

Offshore Guyana, Tullow owns 60% and Total 25% of the Orinduik block, estimated to hold around 5.1 billion barrels of oil equivalent. Total also holds 25% in the Kanuku block, adjacent to Orinduik, in which Tullow holds 37.5%.

While two of Tullow's previous wells in Orinduik produced heavy oil, calling into question the quality of the reservoir, other wells targeting deeper layers have produced lighter oil - reviving hopes for the commerciability of wells targeting the so-called Upper Cretaceous.

Pouyanne said he expected two or three wells to be drilled offshore Guyana this year. Total, Tullow and their Orinduik partner Eco are due to meet this month and discuss next steps for their drilling off Guyana.

In Uganda and Kenya, Total and Tullow have partnered to bring the countries' first oil projects onstream, but both projects have hit snags.

Onshore Uganda, a deal for Tullow to sell a chunk of its stake to Total, fell through in August due to tax disputes with the government.

Uganda's government said in December it had settled the dispute with the companies, but they have not yet confirmed any such deal.

Pouyanne told Reuters discussions were still ongoing, but that Tullow's "financial issues" must also be dealt with.

In Kenya, Tullow and Total aim to reduce their stakes with a joint sale that could see Tullow exit completely amid uncertainty over the project's launch, banking and industry sources said.

Tullow declined to comment.

February 12, 2020

PETROFAC LTD » Unaoil trial

Started 20 January,2020.

For Mention - Case Started 01/11/2019 09:58
For Pre - Trial Review 16/12/2019 09:59
For Trial - Case Started 20/01/2020 10:34
For Trial - Case adjourned until 11:15 20/01/2020 10:53
For Trial - Resume 20/01/2020 12:03
For Trial - Case adjourned until 14:00 20/01/2020 12:27
For Trial - Legal Submissions 20/01/2020 15:05
Trial (Part Heard) - Resume 21/01/2020 10:13

January 21, 2020