Tullow Oil profit rises to $89m

Tullow Oil said its profits almost trebled in the first half of the year as oil and gas prices rose.

The company reported profits of $89 million, up from $31 million in the same period a year earlier, with sales up 11 per cent to $486 million.

Operating profit rose 35 per cent to $124 million.

Tullow raised its production guidance for the year, to between 57,000 and 58,000 barrels of oil equivalent (boepd), up from guidance of 55,000-57,000 boepd in March.

The company produced 55,800 boepd in the first six months of the year, down 6 per cent on the same six months in 2009.

Tullow said its Jubilee project was on schedule for first oil in November or December, but said a dispute between Heritage Oil and the Ugandan government over capital gains tax needs to be resolved before the purchase from Heritage and the subsequent farm-down to CNOOC and Total can be finalised.

Chief executive Aidan Heavey said the company made strong progress in the first half.

"Our exploration and development programmes are delivering excellent results with significant new oil discoveries being made in both Ghana and Uganda and first oil from Jubilee expected before year-end," he said.

"With the balance sheet strengthened at the beginning of the year, and the expected proceeds from the Uganda farm-down, we will be very well funded to pursue our exploration-led growth strategy.”