October 27, 2017//-Tullow Oil Plc, a leading independent oil & gas, exploration and production group, quoted on the London, Irish and Ghanaian stock exchanges has abandoned an ambitious oil project off the coast of Suriname after the company failed to make an economic discovery.
The oil giant which operates in Ghana and other African countries took a 5pc hit to its share price after reporting that the 1.6-mile deep Araku-1 well is being plugged and abandoned because it does not hold oil that could prove to be commercial.
This is the second major disappointment for the Africa-focused oil explorer and producer, which was took a $650 million writedown on its Tweneboa, Enyenra, Ntomme (TEN) fields offshore Ghana earlier this year.
Announcing the disappointing news in a statement, the company said: “No significant reservoir quality rocks were encountered although logging and sampling proved the presence of gas condensate”.
The well is now being plugged and abandoned. Important geological insights gained from this well, in combination with high quality 3D seismic data, have de-risked deeper plays which offer significant future exploration potential in the Group’s acreage, it added.
“The Araku-1 exploration well in Suriname has been drilled to a total depth of 2,685 metres and penetrated the objectives of the Araku prospect. The Araku well was drilled in Block 54 in water depths of approximately 1,000 metres using the Noble Bob Douglas drillship.
Tullow Oil operates Block 54 with a 30% interest alongside joint venture partners, Statoil (50% interest) and Noble Energy (20% interest)”, the oil giant noted.
Angus McCoss, Exploration Director, commented today: “The Araku-1 well was an ambitious wildcat exploration well that was drilled efficiently and at very low cost. While we have not made a commercial discovery, we are encouraged by recovering gas condensate from the well and remain fully committed to exploration in Suriname and Guyana.
Tullow continues to pursue the considerable prospectivity and potential of this large licence and the wider region. We will now consider our next steps with our Joint Venture partners.”
African Eye Report
