Tullow Oil cuts production target again

FTSE 100 explorer Tullow Oil released a bullish update for the third quarter, but said that slower than expected production in Ghana had forced it to cut targets again.

"Group production for 2011 is now expected to average 79-81,000 barrels of oil equivalent per day (boepd) due to slower than expected ramp up from the Jubilee field," the firm said.

"Recently, production rates have been below expectations due to mechanical issues in certain wells related to the design of the well completions," the firm said.

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"These issues are not unusual for a new field development of this type and remedial work is currently ongoing."

In August Tullow cut its full-year average production guidance was cut from 90,000-94,000 bopd to 82,000-84,000 bopd, again due to delays at its Jubilee field off Ghana.

The company said production performance from the rest of the African portfolio was in line with expectations, as was production in Europe.

Despite the problems in Ghana, Tullow said it expected record full year financial results for 2011.

"With development plans across the group gathering pace and production continuing to grow, the outlook for the full year and for 2012 remains very positive," the firm said.