First oil from major deepwater prospect off the coast of Ghana expected by the middle of next year. Photo courtesy of Tullow Oil

LONDON, Nov. 11 (UPI) -- Africa-focused Tullow Oil announced plans to keep a lid on spending, but noted one of the larger offshore developments, in Ghana, should launch next year.

Tullow, which has headquarters in London, said capital spending for full-year should be around $1.9 billion. That should fall for 2016 by 36 percent to $1.2 billion.


Lower crude oil prices have forced most energy companies to reprioritize their spending strategies as profits fall.

"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," Tullow Chief Executive Officer Aidan Heavey said in a statement.

One of the largest assets in its portfolio, the so-called TEN project, Heavy said the development is about 75 percent completed and first oil should be delivered from the complex off the coast of Ghana by mid-2016. At its peak, it is expected to produce about 80,000 barrels of oil per day.

Once TEN is producing oil for the company, Heavy said its entire asset portfolio should yield about 100,000 bpd.

"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," he said.