Offshore: Tullow Oil’s Jubilee South East Project begins production
Tullow Oil PLC, in conjunction with its joint venture partners Kosmos Energy, Ghana National Petroleum Corporation, Petro SA, and Jubilee Oil Holdings, has announced the successful commencement of operations at the Jubilee South East (JSE) Project, located off the coast of Ghana.
The JSE Project has witnessed the successful start-up of its first production well, with plans underway to bring two additional producers and one water injector online by the end of this year. This strategic move aims to sustain the gross Jubilee production above the 100,000 barrels of oil per day (bopd) mark. To achieve this, Tullow and its partners have outlined an ongoing infill drilling program, ensuring heightened production levels at Jubilee for the foreseeable future.
Identifying numerous potential drilling sites, the partnership is diligently prioritizing these opportunities to extend the production plateau and unlock the full potential of Jubilee’s significant resource base.
The successful implementation of the JSE Project has required substantial investments from Tullow and its partners, amounting to approximately $1 billion over the past three years. This financial commitment has been directed towards drilling wells and establishing the requisite infrastructure, enabling the extraction of previously untapped reserves.
Notably, the project has showcased a strong emphasis on local engagement, with Ghanaian suppliers playing a prominent role in the fabrication of complex offshore infrastructure. Furthermore, over 90% of the project’s workforce comprises local employees, reflecting Tullow and its partners’ dedication to developing domestic capacity and fostering economic growth within Ghana.
A ceremony to commemorate the achievement of First Oil will be held in Ghana during the third quarter of 2023.
Rahul Dhir, Chief Executive Officer of Tullow, expressed his appreciation for the significant milestone achieved, acknowledging the collaborative efforts that have brought the JSE Project into operation. Dhir emphasized Tullow’s proficiency in project management and operations, enabling the successful development of a complex offshore endeavor that holds immense potential for value creation.
He further highlighted that the anticipated production ramp-up in the latter half of 2023 would generate substantial free cash flow, leading to a meaningful reduction in debt. This, in turn, positions Tullow as a low-debt enterprise, poised for growth and well-equipped to pursue value-accretive opportunities.
Dr. Matthew Opoku Prempeh, Ghana’s Minister of Energy, lauded the milestone achieved by Tullow and its partners, extending congratulations and emphasizing the government’s commitment to leveraging the nation’s natural resources for the ultimate benefit of its citizens. Dr. Prempeh underscored the ongoing collaboration with strategic partners and the pursuit of sustainable economic development for the Ghanaian people.
