Tullow ends the 17-year famine

TULLOW OIL today outlined plans to pay a dividend for the first time in 17 years as a public company.

The oil explorer and producer said it intended 'to introduce a progressive dividend policy in the near future' as it reported a massive boost in sales and profits after its purchase of North Sea assets from BP last year.

The deal transformed Tullow from an explorer, using all its financial resources for capital investment, to a producer churning out cash.

Finance director Tom Hickey said the North Sea assets were exceeding expectations both because of the opportunities from undeveloped discoveries and higher than expected gas prices.

The other main driver of sales, the offshore Ivory Coast project, would produce an estimated $35m (£25m) of turnover in the current year.

Tullow made pre-tax profits of £16m in 2001, up from £793,000.