Ghana’s total oil output is expected to top 180,000 barrels per day (bpd) when the Tweneboa-Enyenra
Ntomme (TEN) oil field begins commercial production in mid-2016, Tullow Oil, lead operator of the field, has said.
According to Tullow Ghana’s General Manager Charles Darku, factors such as the drying up of some wells at the Jubilee field by the time TEN cores fully on ! stream could mean that the country’s production would be about 180,000bpd — instead of more.
“The Jubilee field is currently producing 110,000bpd, and in the long-term we should be able to increase
that.The TEN Field has an (FPSO) with a capacity of 80,000bpd and wouldn’t come on stream in mid-2016 at that level but in the long term will,” Tullow’s Head of Corporate Communication Chris Perry told the B&FT.
Speaking at Tullow Oil’s turn at the Ghana Stock Exchange’s “Fact behind the Figures” forum, Mr. Perry said Tullow is injecting US$4.9 billion in the TEN project, located in the Deepwater Tano licence and 30km west off the Jubilee Field.
Tullow operates Deepwater Taro with a 47.175% interest, sharing ownership with Kosmos Energy (17%), Anadarko
Petroleum (17%), Sabre Oil and Gas Holdings (3.825%) and the Ghana National Petroleum Corporation (15%).
The TEN project contains 143-377 million oil reserves and 128-399 million cubic feet of gas reserves, with the field’s plateau production rate expected to be 80,000 barrels per day from an FPSO vessel in 1.5 km of water.
Commenting on Tullow Oil Plc’s half-year report, Chris Perry said the group’s production shot up 14% to 88,600 barrels of oil equivalent per day (boepd), with first half revenue also increasing by 15% to US$1.3 billion, and operating cash flow before working capital movement exceeding US$ 1billion in the period. The company’s balance sheet remains strong with net debt of US$1.7bn.
According to Aidan Heavey, Tullow’s Chief Executive, “the Company also has a considerable pipeline of development activity. This includes reviewing potential development options for the over 300 million barrels of oil discovered onshore Kenya, the farm-down of our interest in the TEN project in Ghana, and reaching the final stages of agreeing the key components of the Lake Albert Basin development in Uganda.”
The Group’s planned farm- down or sale of part of its current equity in the TEN development will be in return for a development carry from the TEN project.
“This will enable Tullow manage its exposure to development spend over the coming years whilst retaining a material interest and operatorship of the high-value oil production expected to commence in mid- 2016. The move will substantially enhance the Group’s cash flow and financial strength,” the company stated.
The importance of Tullow’s current high margin West African oil production portfolio, to which TEN will be a critical addition, can be seen in its strong cash-flow generation, with West Africa representing 77 % of the Group’s 88,600 boepd working interest production in the first half of 2013.
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