Tullow hopes to FID on a production project in the South Lokichar basin near Lake Turkana in northern Kenya in 2019
Tullow’s revival still faces production challenges
Tullow Oil is to pay a dividend once more. But can it find the barrels to sustain its improving balance sheet?
Tullow Oil has maintained stronger cash flow, reduced its debt and now reinstated its dividend. But the bellwether African explorer faces challenges in securing fresh production from East Africa as it seeks to realise production growth ambitions. On 29 November, the company said it would pay dividends in 2019 for the first time since 2014. Tullow said it expected the ordinary dividend in any year would total no less than $100mn and that, in periods of "particularly strong free cash flow generation", the board would also consider making additional returns to shareholders. The move underscores an improved financial situation at Tullow, whose business was hit hard by falling revenues and limit
Also in this section
24 February 2025
Weighed down by higher costs and lower margins, the US downstream sector is facing closures that could shrink capacity
21 February 2025
While large-scale planned LNG schemes in sub-Saharan Africa have faced fresh problems, FLNG projects are stepping into that space
20 February 2025
Greater social mobility means increased global demand for refined fuels and petrochemical products, with Asia leading the way in the expansion of refining capacity
19 February 2025
The EU would do well to ease its gas storage requirements to avoid heavy purchase costs this summer, with the targets having created market distortion while giving sellers a significant advantage over buyers
