Tullow not for sale; we’ll bounce back – Awotwi

Oil giant, Tullow, has dispelled reports that it is up for sale following its recent production challenges in Ghana.

Reports in both the local and international media suggest that the oil exploration firm is open to bids from potential buyers to help bail it out of the production challenges which resulted in the firm’s inability to meet its 2019 target. 

Speaking to some journalists at a media engagement in Accra, the Executive Vice-President and Managing Director of Tullow Oil, Mr Kweku Awotwi, maintained that there is nothing on the table to that effect. 

“No, Tullow Oil is not for sale as has been reported in some news outlets. I think what the Executive Chair was quoted as saying, if you heard him right, is that any public company has to entertain offers from others when its public-listed.”

He also debunked rumours that the company had been hit by financial challenges and assured that Tullow Ghana would bounce back soon.

“Going forward, the company, basically, will have to rethink its spending programmes. I think that the market, in addition to the announcement of the CEO and the Head of Exploration, took it badly and it’s the reason why the share price dipped”, Mr Awotwi explained, adding: “If you are following the market, you can see the share price has been creeping slowly up again”. 

“Ultimately, the assets have changed; what we are doing today is what we are doing a week ago: we are still producing oil, we haven’t missed any debt service payment”, he noted.

Last week, Tullow shares plunged to a 16-year low after the company surprised investors by slashing its production forecast, scrapped its dividend and announced that its chief executive and exploration director had left.

Tullow said Paul McDade was leaving after almost two decades at the London-listed company. 

He was appointed chief executive in 2017. 

Angus McCoss, the head of exploration, was also ousted with immediate effect.

Tullow, which trades on the Ghana Stock Exchange, is going for GHS11.94 pesewas per share.