- Oil company Tullow Oil swung to a deep first-half loss after output and crude prices both fell and it wrote down the value of its assets.

Pre-tax losses for the six months through June amounted to $1.44bn, compared to a profit of $268.4m on-year.

Revenue fell 16% to $731m as production dropped 10% to 77,700 barrels of oil equivalent per day.

Tullow Oil said the loss was driven by exploration write-offs and impairments totalling $1.4bn before tax.

Net debt had increased to $3.02bn, up from $2.95bn.

The company narrowed its production guidance for the full year to between 73k and 77k boepd -77,000 beopd.

Tullow Oil said an organisational restructuring was well advanced and forecast to deliver cash savings of over $350m over three years, above a previous target of $200m.

'Despite the very tough conditions in the first half of this year, we have successfully delivered reliable production and major, sustainable reductions to our cost base,' chief executive Rahul Dhir said.

'We are also close to completing the important sale of our interests in Uganda.'

'The quality of Tullow's assets remains robust.'

'Since my arrival as CEO, we have been developing new plans for our business, with the support of our joint venture partners and expert advisors.'

'These plans will deliver enhanced value from our assets to benefit all our stakeholders including our host countries and investors.'

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