Shadia Nasrellah, Reuters, reports on Tullow Oil’s hedging program, here…
”Africa-focused Tullow Oil (TLW.L) said on Wednesday it was increasing the volume of oil it protects with hedging to 75% of the company’s output for the next two years, with plans for a further 50% increase for a year beyond that.
The oil producer had previously hedged around 60% of its output one year into the future and 30% in the second year.
Set up in the 1980s to produce oil and gas in Africa, Tullow has historically focused on exploring discoveries, but the oil price collapse last year forced the company and its rivals to slash exploration budgets.”
Me: The increased hedging does not seem to be related to a producer in growth mode:
”We have shifted our focus away from exploration and development and long-cycle capital commitments to a production-focused company with a robust, cash generative business plan,” Dhir said in a statement.”
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