Tullow Oil, which has been listed in London, has seen its shares go down by over 60 % on Monday in Europe after the oil exporter that has its focus on Africa had slashed the guidance of production and suspended their dividend in the wake of the production results being poor and their chief executive leaving his post immediately.
The company which has actively had operations in countries like Ghana, Uganda, and Kenya has recently suffered setbacks in their projects which have been their flagship projects in the continent of Africa.
In the African country of Ghana, the performance of production has been below the levels of expectations in a significant manner from the main producing assets of the group.
The company has seen a deal fall in the country Uganda for an oil pipeline. This happened in the month of September as the companies from France and China, Total and CNOOC had terminated their agreements to sell the part of the stake of Tullow in the project known as Lake Albert as the authorities in Uganda and their partners were not able to reach an agreement on the availability of a relief for taxation for a consideration which was going to be paid by the French and Chinese companies in the capacity of buyers.
Tullow had warned at the time that this setback is going to in all likelihood delay the eventual investment decision on the project for Uganda pipeline which had been expected initially for the year 2019.
As for the company in Kenya, it has to arrive at an FID on the field production taking into consideration the new forecasts of production and reassessment of costs.