Tullow Oil says production of first oil in the Tweneboah-Enyera-Ntoumme (TEN) area by 2016 will not be affected by the ruling of the International Tribunal against drilling of new oil wells in the disputed area.
According to the oil and gas exploration company, the ten wells that it has already dug, or almost completed works on, has the capacity to pour fist commercial oil by the middle of next year.
Persons with knowledge about the TEN oil fields say Tullow should be able to produce about 20,000 barrels of crude oil a day from the middle of 2016 with the existing wells, and possibly move it up to about 80,000 barrels a day.
A document sighted by Joy Business indicates that Tullow had planned to dig a total of 24 wells in the oil-rich area to achieve its full potential.
However, a source close to the Jubilee partners say, the new plan is to work on the remaining 14 oil wells after 2017.
The International Tribunal for the Law of the Sea based in German City of Hamburg ruled on Saturday that Ghana cannot drill new oil wells in the disputed West Cape Three Point but said stopping the country from current exploration activities would have dire economic implications on the country.
The Ivorians were demanding that Ghana suspends ongoing oil exploration and exploitation operations in the disputed area and refrain from granting any new permit for such activities in the area.
Cote d’Ivoire is laying claim to Ghana’s territorial waters at West Cape Three points currently being operated by Tullow under the TEN project.
Meanwhile, spokesperson for Tullow Oil Plc, George Cazenove, has told the Bloomberg News that the company now awaiting instructions from the government regarding implementation of provisional measures that have been ordered by the tribunal.
Read below an official statement from Tullow Oil Plc on the maritime ruling:
The Special Chamber of the International Tribunal of the Law of the Sea (ITLOS) in Hamburg has rejected Côte d’Ivoire’s request that Ghana be ordered to suspend all oil exploration and exploitation in the disputed zone including the TEN Project.
Development work on the TEN Project continues. The project is now over 55 percent complete with all 10 of the wells expected to be online at first oil already drilled. The project remains within budget and on schedule with first oil expected in mid-2016.
ITLOS has ordered a number of provisional measures which both Ghana and Côte d’Ivoire are required to comply with; including continued cooperation until ITLOS gives its decision on the maritime boundary dispute which is expected in late 2017.
Tullow is not a party to this arbitration process and will now await a decision by the Government of Ghana on how it will implement the provisional measures order.
The Jubilee Field is completely unaffected by this arbitration.