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FPSO Shutdown To Cut Production

  • SOURCE: | qwesa2big
  • 66e19567c25fe568a262e6307f80d14f_L (1)Tullow Oil Plc has indicated that it expects production from the Jubilee field to average 68,500 barrels of oil per day (net: 24,300 bopd), this year taking into consideration the12-week shutdown associated with the next phase of remediation works in the second half.

    This represents a reduction from the 2016 full year production from the Jubilee field which averaged 73,700 bopd (net: 26,200 bopd).

    In February 2016, the company identified a problem with the turret bearing of the Jubilee FPSO Kwame Nkrumah, resulting in the implementation of new operating and off-take procedures, utilising tugs, a dynamically positioned shuttle tanker and storage tanker.

    After a period of planning, Tullow and its JV Partners established that the preferred long-term solution to the turret issue is to convert the FPSO to a permanently spread-moored vessel, with off-take through a new deep-water offloading buoy.

    The first phase of this work, involving the installation of a stern anchoring system, is expected to be completed in February 2017, after which the tugs maintaining the FPSO on heading control will no longer be required.

    The next phase of the project will involve modifications to the turret systems for long-term spread-moored operations.

    Decisions still ongoing

    “Work is expected to be carried out in the second half of 2017, with an anticipated facility shutdown of up to 12 weeks, although work continues to optimise and reduce the shutdown period. The final phase of the project will involve the installation of a deep water offloading buoy which is planned to be installed in the first half of 2018.

    “This will remove the need for the dynamically positioned shuttle tanker and storage tanker and the associated operating costs. This phase of work also requires approval of both the Government of Ghana and the Jubilee JV Partners.

    “The capital costs associated with the remediation works, the lost revenue resulting from the shutdown period, and the increased operating costs are expected to be covered by the Joint Venture Hull and Machinery insurance policy and Tullow’s corporate Business Interruption insurance policy.”

    In addition, under Tullow’s corporate Business Interruption insurance, the Group received insurance payments which equates to 4,600 bopd of net equivalent production.

    Tullow’s corporate Business Interruption insurance policy is expected to reimburse Tullow for the equivalent of 12,000 bopd of annualised net production for this shutdown period, increasing Tullow’s effective net production to around 36,300 bopd in 2017.

    Gas

    It stated that gas production from the TEN fields is currently being re-injected.

    The gas export line between the TEN and Jubilee developments is expected to be connected this month, with gas export expected to commence later in 2017.

    “Proceedings at ITLOS with regard to the maritime border dispute between Ghana and Côte d’Ivoire continue, with oral hearings scheduled for this month, and a final ruling anticipated in the fourth quarter of 2017. Drilling is expected to resume in 2018 after the final ruling.”

    Background

    In December 2015, Tullow submitted the Greater Jubilee Full Field Development Plan to the Government of Ghana.

    Source: http://www.peacefmonline.com/pages/business/economy/201702/305508.php

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