Business News of Thu, 11 Jan 20180
TEN fields output to go up by 12.5%
Oil driller Tullow says daily production from its flagship operated asset TEN fields, in the deep waters offshore Ghana, will go up by 12.5 per cent this year.
The UK oil firm forecast an average production of 75,800 barrels per day (bopd) this year as compared to an average 56,000 bopd produced last year.
“Gross production from the TEN fields exceeded initial guidance in 2017, averaging 56,000 bopd … Tullow expects 2018 gross oil production from the TEN fields to average 64,000 bopd,” the Tullow said in a statement yesterday.
Tullow said a multi-year incremental drilling programme will be started this year, seeking to ramp up production from the TEN fields to utilise the full capacity of the FPSO and sustain this over a number of years.
In this regard, the firm said it had secured the Maersk Venturer rig which is expected to commence drilling in February 2018.
“The rig will be used across the TEN and Jubilee fields and has been contracted for up to four years with favourable early termination provisions. The first well planned is an Ntomme production well in the TEN fields followed by a Jubilee production well located in the north-eastern area of the field. Work is ongoing to finalise the sequence of further wells to optimise output from both the Jubilee and TEN fields,” the statement said.
Tullow said, together with its joint ventures partners, it continued to evaluate the business case for contracting a second rig that would allow the acceleration of drilling on the TEN and Jubilee fields.
Additionally, Tullow anticipates the start of gas sales from TEN in the first half of 2018, saying gross gas sales equivalent to 4,200 boepd (net: 2,000 boepd) have been forecast for the year.
In the last quarter of 2017, Tullow signed the TEN Associated Gas (TAG) Gas Sales Agreement with the government of Ghana.
The oil firm issued the statement to summarise recent operational activities and to provide trading guidance in respect of the financial year to December 31, 2017.
In the operational update, Tullow also estimated an average production of 75,800 bopd from the Jubilee field this year compared to an average 89,600 bopd produced last year.
This means that daily production from the Jubilee field this year will decrease by 15.4 per cent.
In the case of the Jubilee field estimated low production, it took into account the planned shut-downs associated with the turret remediation work.
“Preparations continue in advance of the planned turret bearing stabilisation work in the first quarter of 2018. This work is expected to take place over two shut-down periods, totalling four-to-six weeks. A further planned shut-down of approximately three weeks is expected around year-end 2018 to rotate the FPSO to its permanent heading,” the statement explained.