Tullow and its partners brought the first production well onstream, with two additional wells and one water injector expected to come online this year, and plans to maintain the gross production level at the Jubilee project above 100,000bopd
UK-based oil and gas exploration company Tullow Oil, together with its joint venture (JV) partners, has announced the start-up of the Jubilee South-East (JSE) project, located offshore Ghana.
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Tullow, partners start production at Jubilee South-East project. (Credit: Grant Durr on Unsplash)
The other JV partners include US-based upstream oil company Kosmos Energy, Ghana National Petroleum Corp. (GNPC), South Africa’s national oil company Petro and Jubilee Oil.
Tullow and its partners brought the first production well onstream, with two additional wells and one water injector expected to come online this year.
The partners intend to maintain the gross production level at the Jubilee project above 100,000bopd, through an ongoing infill drilling programme planned for the coming few years.
They have identified several future drilling locations to further extend the plateau and realise the full potential of the significant Jubilee resource base, said the British oil and gas company.
Tullow CEO Rahul Dhir said: “I would like to thank all those who have played a role in bringing this near-field Ghanaian development into production.
“Through our strong project management and operating capability, we have delivered a complex offshore development which is one of the key catalysts to unlock value for our business.
“We are well positioned for future growth with production ramping up in the second half of 2023 that will generate significant free cash flow.
“This marks the start of material deleveraging as we continue our transition into a low-debt business with the financial flexibility to pursue value accretive opportunities.”
In the last three years, Tullow and its partners invested about $1bn in the JSE project to drill wells and install the required infrastructure to start production from previously undeveloped reserves.
The project partners used local suppliers and most of the complex offshore infrastructure has been fabricated by local companies in Ghana, with more than 90% local workforce.
Tullow said that the project underlines the evolution of the supplier base in Ghana that has now grown to support significant elements of the country’s oil and gas industry.
Ghana Minister of Energy Matthew Opoku Prempeh said: “At the Ministry of Energy, we are delighted by this important milestone and wish to congratulate Tullow and the Jubilee partners who have contributed in diverse ways to this journey.
“The approval of the Greater Jubilee Full Field Development Plan by the Ministry in October 2017 paved the way for investment in the development of the JSE project, which has now culminated in the delivery of the First Oil from the JSE area.
“The government of President Nana Addo Dankwa Akufo-Addo will continue to work with all our strategic partners with a view to leveraging our God-given resources for the ultimate benefit of our people.”
