Tullow Oil has expressed its delight on production from its Jubilee field following the recent start-up of the Jubilee South East (JSE) Project, offshore Ghana.
Tullow Oil disclosed that Gross production from the field has surpassed 100,000 bopd, after a second JSE production well was brought on-stream. Meanwhile, both of the JSE wells are performing in line with expectations and have increased production rates by c.50% compared to the first half of 2023.
The company disclosed that two further wells are on track to be tied in during the remainder of the year.
Rahul Dhir, Tullow Chief Executive Officer, commenting on the milestone achieved prayed for sustenance.
“Reaching production of over 100,000 bopd from the Jubilee field is a major milestone for Tullow, our partners and for Ghana. I look forward to working with our partners to sustain these higher levels of production for several years and to realise the full potential of the Jubilee resource base. For Tullow, delivery of this step up in production is a key part of our business plan, in line with our commitment to deliver over $800 million of free cash flow between 2023 to 2025.”Rahul Dhir
Tullow, alongside its joint venture partners Kosmos Energy, Ghana National Petroleum Corporation, Petro SA and Jubilee Oil Holdings recently announced the successful start-up of the Jubilee South East (JSE) Project, offshore Ghana.
The first JSE production well has been brought onstream and a further two producers and one water injector are expected onstream this year to help sustain gross Jubilee production over 100,000 bopd.
Tullow and its partners plan to maintain this increased level of production at Jubilee over the next few years through an ongoing infill drilling programme. The partnership has identified multiple future drilling locations and is focused on high-grading these opportunities to further extend the plateau and realise the full potential of the significant Jubilee resource base.
Tullow and its partners, in the intervening time invested c.$1 billion over the last three years on the JSE Project to drill wells and install the infrastructure needed to bring previously undeveloped reserves to production.
The project has advanced the use of local suppliers and the majority of the complex offshore infrastructure has been fabricated by local companies in Ghana, with more than 90% local workforce. This demonstrates the evolution of the Ghanaian supplier base that can now support substantial elements of its oil and gas industry and is testament to Tullow and its partners’ commitment to developing local capacity.
Ceremony to Celebrate First Oil
A ceremony to celebrate First Oil will be held in Ghana during the third quarter of 2023.
The Chief Executive Officer of Tullow note that the successful start-up at Jubilee South East is a significant milestone for Tullow and for Ghana and I would like to thank all those who have played a role in bringing this near-field Ghanaian development into production.
“Through our strong project management and operating capability, we have delivered a complex offshore development which is one of the key catalysts to unlock value for our business. We are well positioned for future growth with production ramping up in the second half of 2023 that will generate significant free cashflow. This marks the start of material deleveraging as we continue our transition into a low-debt business with the financial flexibility to pursue value accretive opportunities.”Rahul Dhir
Dr Matthew Opoku Prempeh, Minister of Energy, Ghana, also said that“At the Ministry of Energy, we are delighted by this important milestone and wish to congratulate Tullow and the Jubilee partners who have contributed in diverse ways to this journey”.
“The approval of the Greater Jubilee Full Field Development Plan by the Ministry in October 2017 paved the way for investment in the development of the JSE project, which has now culminated in the delivery of the First Oil from the JSE area. The government of President Nana Addo Dankwa Akufo-Addo will continue to work with all our strategic partners with a view to leveraging our God-given resources for the ultimate benefit of our people.”Dr Matthew Opoku Prempeh