UPDATE 1-Tullow confident has cash to weather oil shock

(Corrects total impairment and write-offs to $900 mln in para 6)

* Tullow has $1.9 bln in undrawn bank facilities

* Could reduce $1.1 bln capex budget further

* West Africa output to average 73,000-80,000 bopd in 2016

By Karolin Schaps

LONDON, Jan 13 (Reuters) - Tullow Oil (LSE: TLW.L - news) has enough money to weather a collapse in oil prices and expects the startup of a major oil project in Ghana this summer to replenish its coffers, it said on Wednesday.

The Africa-focused oil company said it entered 2016 with $1.9 billion in undrawn bank facilities, giving it the option to tap more money if needed, and that it was able to shave another $200 million off its $1.1 billion capital investment budget.

"We make money at $30 a barrel because we have low-cost fields, the question is just how much. Our job is to cut costs," Tullow Chief Executive Aidan Heavey told Reuters.

Tullow's balance sheet had been stress tested at $25 a barrel and that even at oil prices at this level the producer had sufficient liquidity to survive, he added.

Oil prices have fallen close to 12-year lows, intensifying a decline since mid-2014 due to a global oversupply in crude oil.

This decline meant Tullow booked impairments and exploration write-offs totalling $900 million last year but said it expected full-year gross profit of $600 million on revenue of $1.6 billion.

The company will publish final results on Feb. 10.

Tullow also said net debt was expected to be $4 billion, lower than many analysts had forecast, lifting its shares. Tullow's stock traded 10 percent higher at 0841 GMT.

"Tullow has provided a reassuring operational update and outlook. We believe the company has the financial flexibility in place to fund its capital commitments," said analysts at Barclays (LSE: BARC.L - news) who rate the stock as "overweight".

Tullow's TEN project is expected to start producing first oil between July and August, a turning point for the company that marks the end of its major financial commitments.

The TEN startup means Tullow expects 2016 West Africa oil output to average 73,000-80,000 barrels of oil per day (bopd), up from 66,000 bopd last year. (editing by John Stonestreet and Alexander Smith)