Business News of 2014-05-13

Tullow to invest $5 million in TEN in 2016

Tullow Ghana Limited will pump about $5 million as capital expenditure into the Tweneboa, Enyena and Ntomme (TEN) project in Ghana by 2016. Tullow has already drilled two development wells after securing the West Leo rig. It is expected that enhanced seismic survey will further enhance well placement.

Tullow has awarded all the subsea contracts and ordered the major equipment. Tullow is in the process of converting the Centennial Jewel tanker into a Floating Production Storage Offtake (FPSO) in Singapore.

This came to light during a presentation at this year's annual Ghana Investor Forum for Tullow's stakeholders held in Accra last Wednesday to review Tullow's business operations. The plan of development was approved for the TEN fields by the Ghana government in 2013. With 45.175% stakes, Tullow, on behalf of the government and its partners, is leading and operating the development of the TEN fields in the Deepwater Tano block which is about 60 kilometres (KM) offshore Ghana. The TEN fields lie within an area of more than 430 square kilometres, about 20 KM west of the Jubilee Field.

The TEN fields have estimated reserves of 140 to 337 million barrels and gas reserves of about 128 to 399 billion cubic feet. Nominal nameplate capacity is estimated at 80,000 standard barrels of oil per day while oil storage will be 1.7 million barrels. The gas processing compression capacity is put at 170 million standard cubic feet per day.

According to Tullow, the detail design work will continue throughout this year, while fabrication and procurement activities are being accelerated. Tullow's efforts to deliver up to 10 wells for start-up are underway, with five wells slated to be drilled this year. These wells will romped up to 24 wells after full development of the fields.

In early 2015, the multinational oil giant will start rig operations relating to the installation of equipment for the first oil wells to commence. This is expected to extend to 2016. But during 2015, the installation of a large part of the subsea infrastructure will be undertaken, prior to the departure of the FPSO from Singapore at the end of that year.

Tullow Ghana is a subsidiary of the United Kingdom-headquartered Tullow Oil plc, Africa's leading oil and gas exploration and Production Company, with over 50 licences in 15 countries in the continent.