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Encourage local firms to take major roles in Oil and Gas sector to secure revenue — IES

  • SOURCE: Citi Fm | qwesa2big
  • The Institute of Energy Security (IES), says it is high time the government pursues an agenda that would encourage local players to take up major roles in the country’s oil and gas sector.

    The comments follow the production difficulties encountered by Tullow Oil at the Jubilee and TEN oil fields.

    According to the Executive Director of the IES, Paa Kwesi Anamuah Sakyi, getting local players involved will impact the country’s revenue as the majority of the profits such foreign companies make, are repatriated to their respective countries.

    “If the foreign companies don’t make profits then we don’t get our taxes and that will affect our revenue. So the current development will impact us negatively, and this is the reason why as a country, we need to promote local participation.”

    “Their production shortfall affects our revenue and our economic development, so in as much as there is cause for concern, there is also hope that Tullow gets back to production numbers are in line with its projections.”

    Tullow’s shares drop 50 percent as CEO resigns over poor performance in Ghana

    Shares of Tullow Oil  Plc on the London Stock Exchange plummeted by more than 50 percent as its CEO, Paul McDade resigned over disappointing performance in its Ghana operations.

    Tullow Oil which is the lead partner of the Jubilee and TEN fields could not meet its production targets due to technical problems at Jubilee as well as a delay in the completion of a well at the TEN fields.

    Tullow has faced challenges in recent months to its plans to develop oil fields in Uganda and Guyana.

    The resignation of CEO, Paul McDade, follows that of the company’s head of exploration Angus McCoss also resigned on Monday.

    Owing to its challenges, the company announced a revision to its key production figures stating that oil production is expected to hover around 87,000 barrels of oil per day (bopd) this year, while lower production in 2020 of between 70,000 and 80,000 (bopd), as it undertook a review of its production performance issues.

    In a conference call, the company said it was open to receiving offers to acquire the company “at the proper value.”

    The Africa-focused oil firm also suspended its dividend as it aimed to generate more cash to support future investment plans and current explorations.

    “The board has, however, been disappointed by the performance of Tullow’s business and now needs time to complete its thorough review of operations,” Executive Chairman Dorothy Thompson said.

    The London-listed company said it had started a process to find a new group chief executive.

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