Tulllow Oil has suffered a drop in production in the six months to June due to technical difficulties at its main oil field, which has eroded earnings and pushed up capital expenditure.
Total revenue fell 37.5 per cent to $500m, while gross profit tumbled by a third to $200m.
Production at its West Africa division, which accounts for the bulk of its oil capacity, fell to 51,900 barrels per day, down from 66,500 in the same period last year. However, since then production has improved to average 90,000 barrels per day in June.
As a result, Tullow has slashed its full year oil production guidance range to 62,000-68,000 per day.
Its averaging selling price also declined, falling $10 per barrel to $61.
Source: FT
