Tullow Oil on June 28 raised its 2018 production outlook to between 86,000 and 92,000 barrels of oil per day (bbl/d) from between 82,000 and 90,000 bbl/d, boosted by its offshore fields in Ghana.

The Africa-focused firm said it has contracted a second rig for its Ghana fields to start work in October on three wells, without increasing its capex program.

Tullow said it is preparing for the London Commercial Court to decide on a $277 million claim brought by Seadrill over the termination of the West Leo rig contract for force majeure in Ghana. Tullow has set aside $128 million in case it loses.

Tullow is also working towards growing output in West Africa in Ivory Coast, where it has farmed out its licenses to Cairn Energy retaining 60%, but with Cairn set to pay for most of the pre-drilling exploration costs.

Looking to further output growth, Tullow is due to start exploration drilling in Namibia in September.

For East Africa, Tullow reiterated it planned final decisions in Uganda toward the end of 2018 and in 2019 for Kenya, where it hopes to export up to 2,000 bbl/d in trucks before a pipeline is built to the coast.

At an average realized oil price of $67 per barrel, Tullow expects to free cash flow of $300 million for the first half year and might cut its net debt to around $3 billion by year-end from about $3.2 at end-June, finance chief Les Wood said.

The company has hedged 45,000 barrels in the second half at a floor price of $52.23 per barrel and about 8,000 barrels in 2020 at a floor of $55.13.