Tullow Oil is targeting half a billion dollars in savings.
The firm confirmed the hefty target in its latest financial update.
Its current debt currently sits at $4.2billion.
Tullow, which is focusses on exploration in Africa, expects its pre-tax operating cash flow before working capital to be around $1billion.
Its full year average West African oil production is now expected to be 66-67,000 bopd with Jubilee expected to average around 100,000 bopd gross in line with previous guidance.
Chief executive Aidan Heavey said: “Whilst 2015 has been a difficult year across the industry, we have taken appropriate steps within our business to meet the challenges presented by lower oil prices.
“We have focused our resources on our West African oil assets which, by 2017 with TEN onstream, will be producing around 100,000 bopd net to Tullow. We are also focused on managing our costs and ensuring that we have sufficient funding to meet all our commitments. We expect to begin deleveraging our balance sheet with production from TEN and this project remains on time and on budget for mid-2016.
“Our East African developments are progressing steadily with FID for both Kenya and Uganda now expected in 2017. As we approach the end of the year, we are focused on our priorities of generating steady cashflow from our operations, completing TEN on schedule and on budget, ensuring we retain appropriate liquidity and building on our exciting exploration prospect inventory for the future.”
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