Tullow Oil Seeks to Ramp Up Production from TEN Fields

FPSO Atta Mills

Accra, Ghana, January 12, 2018//-Tullow Oil Plc, a leading independent oil & gas, exploration and production group, quoted on the London, Irish and Ghanaian stock exchanges has announced that a multi-year incremental drilling programme would be started this year.

The programme, according to the company seeks to ramp up production from the Tweneboa, Enyenra, Ntomme  (TEN) fields to utilise the full capacity of the FPSO and sustain this over a number of years.

Following the Ghana-Ivory Coast’s maritime dispute ruling by the International Tribunal for the Law of the Sea (ITLOS) in September 2017 which went in favour of Ghana, Tullow has received notification from the Government of Ghana to recommence drilling in the TEN fields, the company said in its 2018 Trading Statement and Operational update.

In the last quarter of 2017, Tullow signed the TEN Associated Gas (TAG) Gas Sales Agreement with the Government of Ghana and Tullow anticipates the start of gas sales from TEN in the first half of 2018. Gross gas sales equivalent to 4,200 boepd (net: 2,000 boepd) have been forecast for the year.

“Tullow expects 2018 gross oil production from the TEN fields to average 64,000 bopd (net: 30,200 bopd). During the year, the rig schedule and timing of drilling and completion operations will be optimised, providing upside potential to this initial estimate”, the statement said.

Commenting on this development,  the Chief Executive of Tullow Oil Plc, Paul McDade said: “Tullow delivered strong operational and financial performance in 2017 against the backdrop of continued industry volatility. The business is expected to generate free cash flow of $0.5 billion, above expectations, due to high levels of operated production and further progress on cost and capital efficiency”.

“There was also material improvement in the Group’s balance sheet, with significantly reduced gearing and an overall reduction in net debt of $1.3 billion”.

He continued: “Over 2018 we expect to continue this positive momentum. With our diverse low-cost assets and high-graded exploration portfolio, enhanced by recent licence additions in Côte d’Ivoire and Peru, we have a strong foundation to grow the business and further reduce our debt.”

Gross production from the TEN  fields exceeded initial guidance in 2017, averaging 56,000  barrels of oil per day (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 noted.

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