Jubilee Oil Field Output Drops to 89,000 bpd Amid Operational Challenges
Production from Ghana’s Jubilee oil field slowed to 89,000 barrels per day (bpd) in October 2024, marginally down from the 90,000 bpd recorded in July, according to Tullow Oil’s latest trading update published on November 28.
The underperformance, Tullow said, stems primarily from operational challenges, including issues with the J69-P well, unplanned downtime at the Ghana Gas Company’s onshore processing plant, and disruptions to water injection caused by power outages.
“The end of October update fell below expectation primarily due to underperformance of the J69-P Well as flagged previously,” the company disclosed.
Path to Recovery
Despite the slowdown, Tullow remains optimistic about reversing the trend. Corrective measures, combined with production optimization initiatives, are expected to stabilize output in the coming months.
“These measures are expected to mitigate the declines experienced in the second half of 2024,” Tullow said, while noting that the Jubilee and TEN FPSOs achieved a 98% uptime year-to-date, underscoring the overall resilience of its operations.
In a bid to boost medium-term production, the company is set to roll out a 4D seismic programme in January 2025, which will enhance data quality and optimize well locations for future drilling activities.
Liquidity Pressures from Unpaid Government Debt
The trading update also highlighted a $40 million debt owed by the Government of Ghana for gas supplied from the Jubilee and TEN fields, described as “overdue gas payments.”
Tullow underscored that settling the arrears would bolster its financial position, providing much-needed liquidity as the company works to navigate recent operational pressures.
Strategic Focus
Tullow’s focus on mitigating short-term production declines and its investment in advanced seismic programmes reflects its commitment to stabilizing operations and maintaining its leadership in Ghana’s upstream oil sector. However, the confluence of operational issues and unpaid government debt underscores the challenges faced by operators in West Africa’s oil industry.
The company, however, remains confident in achieving a stronger year-end performance as corrective actions and improved operational strategies take effect.
