Tullow revises production target; plans drilling more wells in Ghana

Tullow Oil says it plans to start fresh drilling on the Jubilee fields by October this year as the company also revised its production outlook to 92,000 barrels a day. 

“Production in the first half of the year is slightly below expectations due to downtime related to maintenance work on the gas compression system,” Tullow stated in its 2018 trading statement and operational update.

This comes after the company purchased a second rig to help boost production.

According to Tullow, this will enable them to carry out simultaneous drilling and completion activity, allowing the tie-in of new wells to be brought forward.

The deployment of the second rig is expected to be managed within the existing 2018 Ghana capital expenditure budget as the first rig – the Maersk Venturer began drilling later than initially planned.

“Interest gas production is expected to average around 3,000 boepd, adjusted to reflect a later start-up of gas sales from TEN. Overall Group production guidance for the full year is 89,000-95,000,” Tullow said in a statement.

Chief Executive Officer of Tullow Oil plc, Paul Mcdade said, “Tullow has performed strongly so far in 2018. With substantially reduced gearing and financial discipline embedded across the Group, we are now able to focus on the growth of the business.

He added, “We are accelerating production and cash flow across West Africa, we continue to make good progress towards sanctioning our developments in East Africa and, having refreshed the exploration portfolio, we are about to embark on a multi-year frontier drilling campaign targeting high-impact prospects in Africa and South America. There is much to look forward to for the remainder of the year and beyond.”

The FPSO Kwame Nkrumah was shut down for two periods in the first half of 2018 for the planned turret remediation work to stabilise the turret bearing.

This work has successfully prepared the FPSO for long-term operations as a permanently spread moored vessel.
A final planned shutdown is expected around the end of 2018 to rotate the FPSO to its permanent heading and install the final spread mooring anchoring system with minimal impact to production

West Africa

Tullow’s West Africa first half 2018 oil production is expected to average 87,400 bopd, in line with expectations.

This includes 11,200 bopd of production-equivalent insurance payments relating to the Jubilee field that are expected to be realised under Tullow’s Corporate Business Interruption insurance policy.

In its 2018 trading statement and operational update, Tullow said, “Non-operated portfolio production in the first half of the year was strong across the West Africa non-operated portfolio and is expected to average around 22,200 bopd net.”

The statement added, “The Equatorial Guinea fields have performed particularly well following a change of operator and Tullow has therefore increased its annual net production forecast from the Okume and Ceiba fields to 6,400 bopd net (up from 4,800 bopd net).

Source: Joy Business

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