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Business News of Thursday, 11 January 2018


Tullow Ghana upbeat about oil production in 2018

Tullow Ghana is upbeat about its oil production from the TEN and Jubilee fields this year.

According to the company, it expects gross oil production from the TEN and Jubilee fields to average 139,800 barrels per day for the 2018 season.

In its 2018 Trading Statement and Operational update, Tullow announced that it has secured the Maersk Venturer rig which is expected to commence drilling in February. The rig, according to the company will be used across the TEN and Jubilee fields and has been contracted for up to four years with favourable early termination provisions.

The first well planned is the Ntomme production well in the TEN fields, followed by a Jubilee production well located in the north-eastern area of the oil field.

Tullow, also stated that work is ongoing to finalise the arrangement of further wells to optimise output from both the Jubilee and TEN fields.

It assured that the company, and its Joint Ventures Partners will continue to evaluate the business case for contracting a second rig that would allow the acceleration of drilling on the TEN and Jubilee fields.

The company also expects its TEN Associated Gas with Ghana to start in the first half of 2018.

Jubilee in 2017

In 2017, gross production from the Jubilee field averaged 89,600 barrels per day (net: 31,800 bopd).

Tullow’s Corporate Business Interruption insurance is expected to reimburse 7,400 barrels per day of net production-equivalent insurance payments, bringing expected full year effective net production from Jubilee to 39,200 bopd.

According to the company, gross production in the latter part of 2017 was consistently above 90,000 bopd.

TEN in 2018

Gross production from the TEN fields exceeded initial guidance in 2017, averaging 56,000 bopd (net: 26,400 bopd). This strong performance was as a result of production and water injection optimisation which continues to be effective and the field performed consistently above 70,000 bopd during November and December 2017.

The company said following the ITLOS ruling in September, Tullow has received notification from the Government of Ghana to recommence drilling in the TEN fields.

“A multi-year incremental drilling programme will be started this year, seeking to ramp up production from the TEN fields to utilise the full capacity of the FPSO and sustain this over a number of years”.