Oil exploration and production firm, Tullow Oil together with its partners are set to invest $4.2 billion dollars into the Jubilee and TEN oil fields focusing on new wells and infrastructure over the next 10 years.
The $4.2 billion investment forms part of an ambitious ‘Value Maximization Plan’ by Tullow Oil that is expected to deliver consistent revenue and value to Ghana.
Making the disclosure in a media interaction, Chief Executive of Tullow Oil, Rahul Dhir, asserted that the oil production at the two oil fields is still in its early stages.
“You say you have a good field when you get 40% to 45% of the oil out. If you take the case of Jubilee, if we’ve produced 16% then we’re only about a 3rd of the way there. That’s not mature. If you take the case of TEN, if we’ve produced 8% (we have today defined projects that take us to 30%), we are only about a 4th of the way there.”
“So you can look at today as the first day in the life of these fields where you have 2.6 billion barrels of oil. And if you take the operational and cost improvements that I’ve talked about, and you superimpose them on the oil that’s left in the ground, you can see why we are well-placed to maximize value and that’s the basis that led us to think of what we call Ghana ‘Value Maximization Plan’,” he added.
Mr Dhir also pointed out that, in addition to the world-class oil resources, these fields also have substantial gas potential which, if utilised, can ensure that Ghana’s power and industrial markets are supplied with cheap, domestic gas in line with Government priorities.
Tullow and its partners have already delivered 150 billion cubic feet (bcf) of Foundation Gas at no cost, with a further 50 bcf left to be provided on the same basis. Furthermore, Tullow and its Partners have also submitted a 10-year Firm Gas supply proposal to deliver over 500 bcf of low cost and reliable gas to Ghana for the long term.
Speaking further during the media interaction, Mr Dhir also shared how Tullow is responding to the interlinked challenges of climate change, the energy transition and supporting economic growth and prosperity.
“As a start, Tullow recently committed to being Net Zero by 2030, that means ceasing flaring from our operated FPSOs in Ghana, reducing the carbon footprint of our operations and offsetting the remainder of its carbon emissions. Natural gas is globally recognised as an important low carbon energy source. Critically, natural gas production from Jubilee and TEN will further support the development of Ghana’s economy while minimising the climate impact,” he averred.
Tullow oil is the lead operator in the Jubilee and TEN oil fields, which have been in production since 2010 and 2016 respectively.
