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Oil exploration firms are now feeling the heat from the declining crude oil price, as they release their financial results for last year.
Tullow Oil for instance recorded a 2 billion dollar pre-tax loss for last year.
According to Tullow its sales revenue also went down by 16 percent to 2.2 billion dollars mainly because of declining crude oil prices on the international market, which went down by about 60 percent from June last year to date.
Tullow also in its financial statement has maintained that it might be difficult to pay dividends to shareholders because of this development.
The oil exploration firm, says that it is also planning to cut its capital expenditure for this year, however the statement was silent on whether this cut will affect its operations in Ghana.
According to the statement it is planning to spend 1.3 billion dollars on Jubilee and TEN out the total 1.9 billion it is planning to spend on its exploratory activities this year.
On crude production, Tullow says it was able to exceed its target with an Average production of 102,000 barrels a day, despite delays in the construction of the Ghana Gas infrastructure project.
Source; Myjoyonline
