Continental Focus, International Reach

Tullow Updates Ghana Flows

Sunday, April 28, 2019

Tullow Oil, in its latest trading update, revealed that its working interest production from Ghana in Q1 averaged 84,600 bpd. The production flows were below expectations due to gas compression constraints on Jubilee during February and a delay in completing the Enyenra-10 production well at the TEN field. Both issues have now been resolved: gas compression on Jubilee has been reinstated and the Enyenra-10 production well has been successfully completed and came onstream in early March.

To account for the lower performance during Q1, the 2019 production forecast range has been adjusted from 93,000-101,000 bpd to 90,000-98,000 bpd. This forecast includes production-equivalent insurance payments of 1,000 bpd from the company’s Corporate Business Interruption insurance.

According to the company, the lower production from Ghana has been partially offset by strong performance from the Central and West Africa non-operated portfolio, with the new Simba and Ruche fields in Gabon significantly exceeding expectations.

Tullow said it is currently producing over 95,000 bpd; however, the addition of a new production well on the TEN field is expected to add an additional 5,000 bpd to its flows in Ghana in H2 2019.

Working interest gas production for the full year is expected to average 1,000 boepd.

On the drilling end in Ghana over the quarter, the Stena Forth and Maersk Venturer drillships have been working in tandem on Ghana drilling and completion operations with three wells drilled and two wells completed. The Stena Forth will cease operations in Ghana at the end of May and will move to Guyana in June. The Maersk Venturer will continue with drilling and completion operations in Ghana.