Tullow’s oil production guidance lifted by higher Ghana output

Oil and gas company Tullow Oil has raised its oil production guidance for the year thanks to the higher output from Jubilee and TEN fields offshore Ghana.

According to Tullow’s trading update on Wednesday, the company’s full year 2017 West Africa net oil production guidance, including production-equivalent insurance payments, has been revised upwards to 85-89,000 bopd, from 78-85,000 bopd, following strong production performance from both TEN and Jubilee fields.

On the other hand, Tullow’s gas production from the European portfolio is performing in line with guidance which remains unchanged at 5,500 to 6,000 boepd for the full year.

Paul McDade, chief executive officer at Tullow Oil, commented: “The business is generating free cash flow which is enabling us to continue to reduce our debt. We have upgraded our oil production forecasts for West Africa following strong production at both Jubilee and TEN.”

As detailed by Tullow, the full year gross production guidance from the Jubilee field has been increased to around 89,000 bopd.

Tullow also said that the Government of Ghana in October approved the Greater Jubilee Full Field Development (GJFFD) Plan which has been designed to develop additional commercial reserves and extend the field production profile. Approval of this plan permits infill drilling to start on the Jubilee field and subsequent development of the Mahogany and Teak fields.

Furthermore, Tullow’s full year gross production guidance for the TEN fields is now expected to exceed original guidance of 50,000 bopd.

As the moratorium on drilling off Ghana has been lifted following the resolution of the maritime boundary dispute between Ghana and Côte d’Ivoire in September, Tullow noted it was in the final stages of securing a rig for drilling on both the TEN and Jubilee fields in 2018.

Work is ongoing on the sequence of the drilling campaign to optimize output from both the Jubilee and TEN field with the first well in the schedule expected to be in the Ntomme area of the TEN fields with drilling expected to start in early 2018.

Offshore Energy Today Staff