Tullow Oil shares have dropped to nearly half after Chief Executive Officer, Paul McDade, resigned. Additionally, the company also suspended its dividend. This is a move that seeks to generate more cash to support future investment plans and current explorations.
The fall in shares comes after the company failed to meet production targets due to weak performance by flagship assets in Ghana. A delay in completing a well at the TEN offshore field, which led the firm to cut its estimates for 2019 oil output last month, has also contributed to the fall.
As reported by Reuters, Tullow has, therefore, reset its production outlook. It is expected to produce 87,000 barrels of oil per day this year, with lower production in 2020 of between 70,000 and 80,000 barrels of oil per day.
Tullow Oil is a multinational oil and gas exploration company founded in, Ireland. Its headquarter is situated in London, United Kingdom. It has interests in over 150 licenses across 25 countries with 67 producing fields. The company has partnered with Africa Oil and Total in their activities in Kenya.
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