Tullow Looks To ‘Restock’ Portfolio By Stepping Up Exploration

The company behind basin-opening discoveries in Uganda, Gabon and Ghana is planning to ramp up exploration spending amid improved market conditions starting in September with a “high-impact” exploration campaign in Namibia.

Tullow Oil, an Africa-focused independent E&P, plans to spend up to $150 million on exploration in 2019. This is up from $90 million budgeted for this year.

“We are only drilling one well this year but we’re looking to drill three to five next year as we kind of restock the portfolio,” Tullow CFO Les Wood said during a meeting with analysts July 25. “We’re at the point now where we want to drill and generate growth.”

Following a period that saw exploration coffers gutted, improved market conditions characterized by higher oil prices, sustained cost deflation and demand have given oil and gas companies the confidence needed to move forward with exploration plans. This includes activity in less explored areas with unrisked prospectivity and near areas where there has been success.