Tullow pushes forward with Jubilee FPSO repairs

Oil and gas company Tullow Oil is pushing forward with repair works on the Jubilee field FPSO, offshore Ghana. 

Tullow, the operator of the Jubilee field, said in an update on Wednesday that the Jubilee field FPSO turret remediation project is progressing as planned and that the interim spread-mooring of the vessel on its current heading is on track to be completed by the end of 2016.

To remind, after experiencing issues with the FPSO operating on the Jubilee field in early 2016, Tullow launched an investigation and found out that the turret bearing on the FPSO Kwame Nkrumah was damaged and was no longer able to rotate as originally designed forcing the company to change operating procedures.

The FPSO had to be shut down for a period of time ending in May when production from the field was restarted. Tullow and its partners in the field, Kosmos Energy, Anadarko, GNPC, and Petro SA, came up with a solution to convert the FPSO to a permanently spread moored facility, with offtake through a new deepwater offloading buoy, as the preferred long-term solution.

Tullow informed on Wednesday that, after the interim phase has been completed, the next phase of the project involves spread mooring the FPSO in its permanent and optimum heading position.

Details of this phase are currently being finalized between the operating company, the government of Ghana, and the joint venture partners but Tullow emphasized that it remains on schedule to be completed in 2017. This work is likely to result in up to 12 weeks of production shut down in 2017. However, Tullow’s corporate policy for Business Interruption insurance is expected to offset the loss of revenue associated with this loss of production, the company noted.

Following affirmation of insurance cover for both the joint venture hull and machinery policy and Tullow’s corporate policy for Business Interruption, Tullow is currently working with the loss adjusters to establish efficient payment schedules for reimbursement of operating and capital costs associated with the remediation project and lost revenue from reduced production.

Gross production from the Jubilee field has been steady at around 100,000 bopd since August, as revised operating procedures continue to be effective. Forecast 2016 gross production from the Jubilee field remains unchanged at 74,000 bopd.

Offshore Energy Today Staff