Tullow Oil said it had made ‘excellent progress’ during the second half of 2010 after the discovery of a major oil field off the coast of Ghana.
In a trading statement for the period from 1 July 2010 to 9 November 2010, the firm said financial performance was in line with expectations.
According to Tullow, the Owo oil field had the potential to be the largest oil field since it discovered the Jubilee oil field. The discovery of the Owo field contributed to a year-to-date exploration and appraisal success rate of 83 per cent from 24 wells. The company said the Jubilee oil is on track for production to begin in December at the top end of its estimates.
It also said negotiations with the Ugandan government were progressing over plans to farm-down production to Total and CNOCC. However, no approval will be reached until an outstanding dispute over capital gains tax has been reached.
Tullow had foud itself at the centre of the tax issue after acquiring a 50 per cent interest in sites in the Lake Albert Rift Basin from Heritage Oil & Gas