Tullow gears up for 'transformational' 2010

10th Mar 2010 07:12

Lower oil prices and production slashed Tullow Oil's net income in 2009, though it had an outstanding year for drilling with 13 out of 15 wells striking oil or gas.Net income fell 92% to £19m in 2009, as sales dipped 16% to £582m due to lower production volumes and commodity prices. Tullow is scheduled to drill a further 30 wells this year mostly on its highly prospective acreage in Africa and it says it is entering a phase that should deliver major production growth from the end of 2010.Tullow exercised an option over partner Heritage Oil's Uganda asset in January for up to $1.5bn with CNOOC and Total proposed as new joint venture partners to help develop the field."Although our 2009 reported results still reflect a period of financial transition, first oil in Ghana from the Jubilee field later this year will result in considerable production growth and increased cash flow. Our transformational exploration programme continues apace with up to 30 wells planned for 2010. In Uganda we are working closely with the government and two potential new partners to accelerate development," chief executive Aiden Heavey said.A final dividend of 4p per share makes an unchanged 6p total for the year.