Tullow Oil has produced more than 22 million barrels of oil and safely exported 21 oil cargoes since the start of production in the Jubilee field at the end of 2010, according to a statement released by the oil giant.
The field is currently producing around 80,000 barrels of oil per day from eight wells with a ninth production well, J-07, currently offline while it is being sidetracked. The six water injection wells and two gas injection wells are now on line injecting 230,000 bwpd and 85 mmscfd respectively, providing good pressure support to the field.
Recently, production rates have been below expectations due to mechanical issues in certain wells related to the design of the well completion. These issues are not unusual for a new field development of this type and remedial work is currently ongoing.The J-07 sidetrack, currently under way, will incorporate a new completion design and is expected to be on stream in early 2012.
These well completion issues are not expected to have any impact on field resources. The resolution of these issues and the contribution of the Phase 1A wells will allow field production to ramp up the facility capacity later in 2012.
The Jubilee Phase 1A Plan of Development is awaiting government approval and drilling is scheduled to start in early 2012 with initial production commencing in the second quarter. The phased approach to field development will allow these wells to benefit from the new completion design.
Appraisal activity continued on the Enyenra and Tweneboa fields. In August, Tweneboa-4 was flow-tested demonstrating good reservoir connectivity. In September, the Enyenra-3 well proved the up-dip extension to the Enyenra field and confirmed a continuous oil column of at least 365 metres. FEED contracts were awarded for the sub-sea and FPSO work-scopes and subject to the successful conclusion of this work and the results from remaining appraisal activity, submission of a Plan of Development is targeted for the first half of 2012.
In the West Cape Three Points licence, the Akasa-1 well made a light oil discovery in August. The Makore-1 exploration well in July encountered good quality reservoir but was water-bearing at this location. The Teak-3 well is expected to reach target depth later in November 2011.
In October this year, the partnership completed the first equity redetermination of the Jubilee Unit Area. The net result is that Tullow’s production interest in the Jubilee Unit Area has reduced slightly from 36.45 per cent to 35.48 per cent. The revised Unit equities are effective from December 1, 2011.
Meanwhile, Tullow Oil has announced the appointment of Mr Simon Thompson as non-executive Chairman of Tullow with effect from January 1, 2012. Mr Thompson, who joined Tullow as an independent non-executive Director in May, 2011, will succeed Mr Pat Plunkett who, after 11 years in the role, announced earlier this year his intention to stand down as Chairman as soon as practicable.
Mr Thompson, 52, brings on board extensive leadership, management, operating and financial expertise in the natural resources sector as well as broad international experience, particularly in Africa and South America.
Mr Thompson graduated from University College, Oxford, with a degree in Geology in 1981. After four years in international banking in the Middle East, he spent 10 years in investment banking, working for N M Rothschild and S G Warburg, where his principal focus was providing corporate and project finance advice to companies in the mining and oil and gas sector.
In 1995 he joined Minorco SA and in 1997 became President of their Brazilian operations.
In 1999 he joined Anglo American in South Africa, after it merged with Minorco, and held a number of senior positions, including Chief Executive of the Base Metals Division, Chairman of the Exploration Division, Chairman of the Tarmac Group and Non-Executive Director of AngloGold Ashanti.
Mr Thompson became a member of the Executive Committee of Anglo American plc in 2003 and an Executive Director in 2005.
Since leaving Anglo American in 2007, Mr Thompson has served on a number of boards and is currently a non-executive Director of Newmont Mining Corporation (USA), one of the world’s largest gold producers; Sandvik AB (Sweden), a global engineering and technology group; and Amec plc (UK), a provider of engineering, project management and environmental consultancy services to the oil and gas, mining and energy industries.
Mr Plunkett joined the Board of Tullow in 1998 and became non-executive Chairman in 2000. During his tenure as Chairman, the company has grown from a market capitalisation of £275 million to be the leading independent Oil and Gas Group it is today with a market capitalisation of close to £13 billion. As well as stepping down as Chairman, Mr Plunkett will retire as a director on December 31, 2011.