Tullow’s shares go down by 50 percent as CEO resigns over poor performance in Ghana
by Magdalene Teiko LarnyohThe shares of Tullow Oil Plc on the London Stock Exchange (LSE) dropped by over 50% as its CEO, Paul McDade resigned due to the poor performance in its Ghana operations.
The resignation of CEO, Paul McDade, comes after the company’s head of exploration Angus McCoss also quit on Monday.
Tullow Oil could not meet its production targets because of technical problems at Jubilee and a delay in the completion of a well at the TEN fields.
Tullow is the lead partner of the Jubilee and TEN fields.
The oil company has seen some turbulent times in recent times in an attempt to develop oil fields in Uganda and Guyana.
Due to the challenges the company is facing, Tullow has announced that it has revised its key production figures stating that oil production is expected to hover around 87,000 barrels of oil per day (bopd) this year.
Meanwhile, the lower production in 2020 is to be between 70,000 and 80,000 (bopd), as it undertook a review of its production performance issues.
Tullow suspended its dividend with the aim of generating more cash to support future investment plans and current explorations.
“The board has, however, been disappointed by the performance of Tullow’s business and now needs time to complete its thorough review of operations,” Executive Chairman Dorothy Thompson said.
Meanwhile, Tullow said it has started a process to find a new group chief executive.