Group Chief Executive Officer (CEO) of Tullow Oil Plc, Mr Aidan Heavey has pledged the company’s unflinching commitment to developing Ghana’s resources to the benefit of its people.
Tullow, he promised, will continue to build on its impressive performance in the industry and commit more resources to the development of the country’s oil resources.
“Ghana remains at the heart of our business and we will maintain our longstanding pledge to develop Ghana’s resources in a way that is responsible and creates maximum benefit for Ghanaians and the government,” he told shareholders at Tullow’s fourth annual investor forum in Accra last Thursday.
The pledge by the leading oil and gas exploration, production group and lead operator of the Jubilee field in Ghana comes in the wake of the dismissal of close to 70 of its workers in Ghana.
The action was necessitated be the plunge in the price of crude on the world market. Crude oil prices in mid year 2014 fell to a six-year low, selling at $42 per barrel for the first time since 2009.
Mr Heavey noted that Tullow’s listing on the Ghana Stock Exchange, and its annual update to Ghanaian shareholders, was prove of Tullow’s commitment to the country and “our desire for Ghanaians to have the opportunity to participate in the industry which develops this country’s natural resources.”
According to him, high operational costs across their locations in the world had compelled the company to downsize its employees, and Ghana was not an exception.
“The operations cost per barrel of oil here is around $10 and we are striving to cut that even more. When the TEN fields come on stream next year, by sharing the cost of the two fields, we should get the cost down to $7 or $8 per barrel,” he submitted.
“The oil price falling from a $100 plus to $50 meant that 50% of your revenue vanished… can you imagine any company who suddenly wakes up in the morning and 50% of your revenue is gone? It’s a very difficult position to be in,” Heavey stated.
Source: The Finder
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