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JUBILEE POWERS TULLOW’S FIRST HALF PERFORMANCE

Ghana’s Jubilee   Field   Operator, Tullow   Oil,   expects   record revenue of $I. 15 billion in the first half of 2012, which compares favorably with the 2011  figure of $1.06 billion it earned,   with   Jubilee   oil   contributing significantly to that in spite of staggering to  maintain  its  early  phase  projected levels.

Tullow said its Group’s oil earnings for the first half of the year averaged 77,400 barrels of oil estimate per day (boepd), showing its 22,400 boepd earning from Ghana’s Jubilee, in the West and North Africa regional total of 55,200 the highest in all its fields across the globe.

The Group has promised to release its half-yearly results on Wednesday, 25″‘ July, 2012.

Among the regional players, Gabon contributed the second highest to Tullow’s revenue with 14,000 boepd and Equatorial Guinea with 11,200 boepd.

The total for Europe for the first half of 2012 was 18,000 boepd, which added to South America and Asia totals averaged 23,200 boepd.

Meanwhile, Tullow Oil has announced an aggressive exploration and appraisal activities, under which it will focus on approximately 40 wells in the coming 12 months, on its fields, spread across Guyana, French Guyana, Kenya, Ethiopia, Ghana, Cote d’lvoire, Liberia and Mauritania.

The company disclosed this in a trading statement and operational update in respect of the first half of 2012, ending June 30th, published on Wednesday, July 4, 2012.

The company said, the Tweneboa-Enyera-Ntomme project, also known as the TEN project is on track, with plan of development billed for submission

to the Government of Ghana in the third quarter of 2012.

Additionally, Tullow said Jubilee Phase 1 A, is progressing well with first oil expected in the fourth quarter of 2012.

According to Tullow, the Jubilee Field has continued to deliver industry-leading operational and safety performance with 98% uptime and zero lost time incidents to date in 2012.

In the first half of the year, field production has averaged 63,100 boepd gross and is currently producing at approximately 63,000 boepd gross with a number of wells temporarily offline for ongoing acid stimulation activity, it disclosed.

Furthermore, the Jubilee Operator said significant increases are expected in the second half of 2012 as the benefit of an acidisation programme is realized and new Phase 1A wells are brought onstream.

The company said Jubilee field production is “expected to average between 70,000 and 80,000 boepd gross in 2012, underpinned by the successful remediation programme,” adding that “The field is expected to exit 2012 with a gross production rate in excess of 90,000 boepd as it ramps up to plateau production in 2013.”

Tullow Oil added that as the projected production figures show, the remedial work to address the decline in productivity from some of the Jubilee wells has progressed well.

It said acid stimulations have now been completed on three of the Phase I production wells and these wells are producing steadily at increased rates. “Acid stimulations have proven to be a cost effective solution to remediating the wells and therefore three more are planned for this year,” Tullow stated, adding that no further sidetracks or recompletions are planned as part of the remediation program.

The Phase 1A development project is progressing as planned with two production wells and one injector well drilled. Well completion and commissioning operations will continue through the second half of 2012 and first production is expected in the fourth quarter of 2012,” Tullow disclosed.

Tuilow Oil indicated that the TEN project appraisal drilling and well testing, to support the Plan of Development (PoD), has continued to progress well.

It said in May 2012, the Ntomme 2A appraisal well was successfully completed and flow tests in both the upper and lower reservoir zones recorded a combined rate of around 20,000 boepd. Continuing, Tullow said following the flow tests, gauge readings were taken at the Tweneboa 3ST well (the Ntomme discovery well) which confirmed reservoir continuity.

“Development work on the TEN project, which includes the FPSO design competition, subsea FEED and associated tendering remains on track for the PoD to be submitted to the Minister of Energy during the third quarter of 2012”,

Tullow stated in the update.  According to Tullow Oil, exploration drilling activity is ongoing in its Deepwater Tano licence with the drilling of the Wawa-1 well, which is expected to reach total depth in July 2012. On completion of Wawa-1, the Okure and Sapele exploration wells will be drilled prior to the exploration licence expiry in January 2013.

Tullow Oil disclosed that in the West Cape Three Points licence, the Teak-4 appraisal well encountered thin non-commercial reservoirs and has been plugged and abandoned. Discussions are on-going in relation to further appraisal and development plans for the Mahogany, Teak, Akasa and Banda discoveries.

In a statement,-Chief Executive Officer of Tullow Oil, Aidan Heavey, said Tullow’s industry-leading exploration success has continued in the first half of 2012 with a major discovery in Kenya, the fourth new basin the Group has opened in five years.

“We have also completed the $2.9 billion farm-down in Uganda, and made good progress on our development projects in Ghana and Uganda”, he said.

He added that significant exploration wells are planned for the East African Rift basins, the West African Transform Margin and the twin basins in South America in the second half of 2012.

“With an exciting programme ahead, Tullow is well placed for continued success over the remainder of the year,” he said.

Furthermore, Tullow said its West and North Africa regional business which has exploration, appraisal, development and production interests, is currently yielding a total of 55,900 (boepd).

Tullow’s Europe, South America and Asia regional business which has exploration, appraisal, development and production interests in the UK, Netherlands, French Guiana, Guyana, Suriname, Bangladesh and Pakistan, is currently at 24,900 (boepd).

Underlift

“At 30 June 2012, Tullow was in a net underlift position amounting to an estimated 26,000 barrels,” Tullow reports, adding that “Movements during the first half of 2012 in underlift and overlift positions are recorded at market value and, combined with stock movements during the period, give rise to a charge of approximately $4 million to cost of sales.”

http://www.energymin.gov.gh/

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Reporting Oil and Gas project was launched on 4th June 2009atTakoradi, Western Region, Ghana by Penplusbytes (PPB – www.penplusbytes.org) with the vision of providing a one stop online information and knowledge about Ghana’s oil and gas sector
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