Business News of Fri, 1 Jun 20183
We will participate in Ghana's oil bloc bid - Tullow Oil Plc
The Chief Executive Officer of Tullow Oil Plc, Paul McDade says the company is ready to focus on growing its production in Ghana by participating in the bidding process announced by government.
Energy Minister, Boakye Agyarko last month inaugurated a committee to supervise an open competitive bidding of Ghana’s oil blocs to prospective oil exploration companies.
The committee, known as the Licensing Bid Evaluation and Negotiation Committee is expected to assess investors seeking to start oil exploration and production in Ghana, and advise the minister before an agreement is established.
Speaking at a press launch, Mr. McDade said, with Tullow delivering a stable gas production from both the Jubilee and TEN fields and making significant contribution to domestic power generation in the country, the company can actively participate in the bid.
“A combination of a strong financial and operational performance and more recently a rising oil price has enabled Tullow to reduce its overall debt by around a third, placing the company on a robust financial footing for growing the business going forward. Following the ITLOS ruling in late 2017 and the approval of the Greater Jubilee Field Development Plan, the company is now focusing on growing its production in Ghana.”
The Chief Executive Officer also mentioned some joint partnership and future investment in other areas such as Uganda and Kenya, that Tullow Oil Plc was getting involved in.
“Tullow has mobilized the Maersk venture rig which commenced drilling early in 2018. Two wells have already been drilled and a third well is ongoing. Production from the first well at TEN is expected to commence early in the second half of the year. A second rig is currently being considered by the partnership to further accelerate production and cash flow. The joint venture partnership is expected to spend over $500 million of capital in Ghana this year. Tullow is also at the final stage of the Turrent Remediation project at jubilee which is progressing well and expects to rotate the FPSO into its final position at the end of the year. We are also making substantial investments in Uganda and Kenya where it is making good progress.”