TLW Tullow Oil Plc

By Ian Walker

LONDON--Tullow Oil PLC (TLW.LN) on Thursday reported lower than expected first-quarter production due to increased downtime at the Jubilee field after a problem was identified on a rig at the end of March, and said full-year production will be below its previous forecast.

The independent oil exploration and production company said group working interest production for the first quarter averaged 59,200 barrels of oil a day for West Africa and 6,500 barrels a day equivalent for Europe.

In light of the issue at Jubilee, full-year 2016 average working interest production is likely to be below current guidance of 73,000-80,000 barrels of oil a day, Tullow said. It will give updated guidance when the new operating procedures have been fully implemented and stabilized.

However, Tullow said it doesn't expect this issue to have a material impact on future cash flow, due to the imminent resumption of production and appropriate insurance policies in place.

Tullow also said capital expenditure for the year will be $0.1 billion lower than previously expected. It previously said capex would be between $0.9 billion and $1.01 billion.

Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749

(END) Dow Jones Newswires

April 28, 2016 02:44 ET (06:44 GMT)

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