Tullow Oil Says Insurance Cover Confirmed for Jubilee Vessel
September 23 2016 - 3:04AM
Dow Jones News
By Razak Musah Baba
LONDON--Oil and gas explorer Tullow Oil PLC (TLW.LN) Friday said
that Hull and Machinery insurance cover for the floating
production, storage and offloading vessel that serves its 35%-owned
Jubilee field offshore Ghana has been confirmed following the
failure of the turret bearing earlier this year.
Tullow said earlier in the year that it was changing some of the
operational procedures at the Jubilee field in Ghana after
detecting a potential issue with a piece of equipment, but said oil
and gas exports from the field would continue as normal.
However, Tullow Oil later cut this year's oil output guidance
after the setback at the Jubilee field, but said it had a plan to
restore output.
The plan, which needs approval from the Ghanian government,
would result in the company spending between $305 million to $355
million (excluding fees related to a buoy) on the field this year
and next. All these costs including production losses would be
recouped via insurance, the company said.
The Hull and Machinery policy, which is procured on behalf of
the joint venture, covers relevant operating and capital costs
associated with both current operating procedures at the FPSO and
the long-term solution, Tullow said Friday.
As operator of the Jubilee field, Tullow will now work closely
with the loss adjusters and reinsurers to establish an efficient
payments schedule as remedial work continues, it said.
Tullow said it also continues to work with its Business
Interruption reinsurers on confirming cover for loss of production
and revenue caused by the turret bearing failure.
Write to Razak Musah Baba at razak.baba@wsj.com; Twitter:
@Raztweet
(END) Dow Jones Newswires
September 23, 2016 02:49 ET (06:49 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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