FPSO to be converted into spread mooring

The Jubilee Partners are seeking government approval for the conversion of the FPSO Kwame Nkrumah into a permanently spread moored facility, with off-take through a new deepwater offloading buoy as the preferred long-term solution.

The first phase of this work will involve the installation of a stern anchoring system to replace the three heading control tugs currently in the field, and this is expected to be completed by the end of 2016 and will require short periods of reduced production.

A recent statement from Kosmos Energy, which said this, indicated that the second phase of work will involve the removal of the load of the turret and risers from the bearing to allow the FPSO to be rotated to its optimal spread moor heading in the first half of 2017.

These phases are expected to cost approximately between $100 and $150 million gross, and it is estimated that the Jubilee FPSO will need to be shut down for 8 to 12 weeks during the first half of 2017.

Cost

The partners will review potential opportunities to improve the efficiency of off-take procedures, which may include the use of a larger DP shuttle tanker.

The additional operating expenditure is expected to be around $115 million gross for 2016 and $80 million gross for 2017.

A deepwater offloading buoy, anticipated to be installed in the first half 2018, will restore full offloading functionality and remove the need for the DP shuttle and storage tankers and associated operating costs.

Market enquiries are currently ongoing to estimate the cost and schedule for the fabrication and installation of the buoy.

TEN

The Tweneboa, Enyenra and Ntomme (TEN) project remains on schedule and within budget, with the project now over 96 percent complete and expected to deliver first oil within the next three to six weeks.

A gradual ramp up in oil production towards the FPSO capacity of 80,000 bopd is anticipated around the end of 2016 as the facilities complete performance testing and well production levels are increased to optimal rates.

Per operator guidance, average annualized production from TEN in 2016 is expected to be approximately 23,000 bopd gross.

Additional drilling is not expected to occur at TEN until after the resolution of the Côte d’Ivoire and Ghana border dispute through the ITLOS tribunal whose decision is expected in late 2017.

Gas re-injection

Associated gas production at TEN is expected to be re-injected into the Ntomme reservoir gas cap until gas export begins.

Gas export was planned to commence 12 months after field start up, with the Tweneboa gas reservoir coming on stream a further 12 months later.

However, options to accelerate gas export are currently being evaluated as the fabrication of the gas export facilities is ahead of schedule, with completion expected in late 2016 approximately six months early.