Tullow project off Ghana on schedule

TULLOW OIL executives told shareholders at a meeting yesterday the company was still on schedule to begin oil production from the Jubilee field off Ghana’s coast in the final three months of the year.

The Dublin- and London-listed group, which has exploration interests in Africa, Europe, Asia and South America, has been gearing up to begin production from the first phase of Jubilee in the last quarter of this year.

Recent speculation suggested that this could be delayed, but Tullow chief executive Aidan Heavey told shareholders yesterday the project was still on schedule and within its $3 billion (€2.4 billion) budget.

Jubilee will produce up to 120,000 barrels of oil per day. Tullow’s partners in the project include Ghana’s national oil company, US operators Kosmos and Anadarko and Sabre Oil and Gas.

The group is shortly expected to finalise a deal with French multi-national Total and Chinese state company CNOOC on a joint partnership to develop Tullow’s interests in Ugandan’s Lake Albert rift basin, which could potentially contain two billion barrels of oil.

Tullow is buying out its exploration partner in the region, Heritage Oil. Mr Heavey said yesterday it had to complete this deal before going ahead with the partnership transaction.

It also needs the Ugandan government’s approval for the CNOOC-Total partnership and expects this to be formally confirmed by the end of this month.