Business News of 2014-02-18

Gas processing plant to be ready mid year — Tullow

Tullow Oil, one of the major Jubilee partners operating in the Ghana offshore oil fields, has stated that the Ghana National Gas Company’s onshore gas processing plant will be ready to receive Jubilee gas in the second half of this year.

According to the company, “The completion of a third gas injection well in the fourth quarter of 2013 brought only limited relief, and further gas disposal options are being discussed with the authorities in Ghana.”

A statement on the website of the company said “Tullow is confident that once the gas processing facilities onshore are completed, the Jubilee Field will be able to produce to its full potential, given the field's well capacity and the strong performance of both the reservoir and the FPSO to date.”

The issue about the completion date of the gas processing plant has been on the table for quite some time now, creating a lot of uncertainty about the date for completion.

The delay in the completion date has compelled the Jubilee partners to seek permission from the government to flare the gas because of the risk associated with keeping it in the wells, a request which is still under discussion.

The statement said “With the resolution of these issues, Tullow estimates that Jubilee Field’s production will average 100,000 barrels of oil per day (bopd) for 2014.”

It added that “These delays, which are not within Tullow’s control, do not affect the recoverable reserves of the field.”