Independent oil exploration and production company Tullow Oil has decided to sell its exploration and development licenses in Norway and exit the country due to a challenging market.
This means that the company will shut down its Norwegian office and lay off around 50 employees.
The company’s spokesperson told Offshore Energy Today that Tullow has already submitted notifications to the relevant authorities and has started a consultation process with its staff.
“This difficult decision has been made in response to the ongoing challenges presented by a low oil price and the need to prioritize our investment in our core portfolio in Africa and South America,” the spokesperson said.
The oil company has 34 licenses in Norway and planned to drill four exploration wells in the country in 2016.
The spokesperson further added: “We also need to consolidate our cost base. We will, of course, fulfill all our commitments on our existing licenses and honor all our obligations to staff.”
Earlier this week, Tullow produced first oil from the Tweneboa, Enyenra, Ntomme (TEN) fields, located offshore Ghana, to the FPSO Prof. John Evans Atta Mills. The company expects oil production to ramp-up gradually towards the FPSO capacity of 80,000 bopd through the remainder of 2016.
Offshore Energy Today Staff