In 2014 the Jubilee Project in Ghana met its annual production target and the FPSO performed impressively. The TEN Project, also in Ghana, continued to progress on time and on budget and at year end was over 50% complete. In East Africa, the Group made further discoveries in Kenya to help underpin the South Lokichar Basin’s commercial potential. We also had a further discovery, offshore Northern Norway, with the Hanssen-1 well which contributed materially to the wider Wisting cluster.
2014 was a challenging year for the traditional oil and gas sector. Oil prices fell dramatically in the second half of the year and the traditional E&P sector was out of favour with investors. In late 2014, the market conditions led Tullow to review its capital expenditure and cost base, and the Group announced that it was re-allocating its spend in 2015 to focus on the TEN Project, the Jubilee field, West African non-operated production and lower-cost, lower risk exploration. The shift towards production assets and the commercialisation of existing discoveries that will generate significant future value and cash flow, will ensure the Group is well-positioned for success when the industry cycle turns.