Jubilee Field: Tullow Oil surpasses 100,000bpd production milestone
Tullow Oil, the British multinational oil and gas exploration company, has achieved a significant milestone in Ghana’s Jubilee Field. In an operational update to investors, the company announced that gross crude production has surpassed 100,000 barrels per day for the year 2023. This accomplishment comes on the heels of the successful start-up of the Jubilee South East (JSE) project well, which has significantly contributed to the increased production levels.
The JSE project, a joint venture partnership between Tullow Oil, Kosmos Energy, Ghana National Petroleum Corporation, Petro SA, and Jubilee Oil Holdings, has proven to be a pivotal factor in Tullow’s turnaround strategy. The company affirms that the JSE wells are performing in line with expectations and are poised to enhance production rates by 50% compared to the first half of 2023. Building on this success, Tullow Oil plans to connect two more wells during the remainder of the year, further bolstering production capabilities.
Rahur Dhir, the Group Chief Executive of Tullow Oil, hailed the achievement as a major milestone not only for Tullow but also for its partners and the nation of Ghana. Dhir expressed his optimism regarding the sustainability of these heightened production levels over the next several years, as well as the tremendous potential of the Jubilee resource base. He emphasized that this step aligns with Tullow’s commitment to generate over $800 million in free cash flow between 2023 and 2025.
To maintain the increased production level, Tullow and its partners have outlined an ongoing infill drilling program in the Jubilee Field. With multiple future drilling locations identified, the joint venture is focused on high-grading these opportunities to extend the production plateau and fully exploit the extensive Jubilee resource base.
The positive impact of the JSE project extends beyond Tullow Oil’s revenue and profitability. This significant development marks a turning point for the company, which has faced technical challenges and declining projections in recent times. Analysts believe that the achievement will not only rejuvenate Tullow Oil but also have substantial implications for the tax revenues received by the Government of Ghana.
In addition to the success in the Jubilee Field, Tullow Oil has reported progress in the Tweneboa, Enyenra, and Ntomme (TEN) project, with the plan of development nearing finalization following constructive engagement with the Ghanaian government. Moreover, the company has maintained exceptional production efficiency across the TEN and Jubilee FPSOs, recording an average uptime of 97% in the first half of 2023.
Tullow Oil’s production milestone in the Jubilee Field underscores the company’s commitment to optimizing resource extraction and harnessing the full potential of its operations in Ghana. With a revitalized outlook, Tullow Oil is poised to reshape its financial prospects and contribute significantly to Ghana’s energy landscape.
