Business News Sun, 28 Apr 2019

Tullow sees lower oil output in Q1 over 'constraints' at Jubilee field

Tullow Oil’s output during the first quarter of the year was below expectations due to issues on its operated fields located offshore Ghana, forcing the Oil and gas company to lower its 2019 production forecast range.

In an operational update on Thursday Tullow said that its working interest production for the first quarter of 2019 averaged 84,600 bopd, including production-equivalent insurance payments.

According to the company, this performance was below expectations due to gas compression constraints on the Jubilee field during February and a delay in completing the Enyenra-10 production well at the TEN field.

Both issues have now been resolved. Namely, gas compression on Jubilee has been reinstated and the Enyenra-10 production well has been successfully completed and came on stream in early March.

The oil company noted that the lower production from Ghana had been partially offset by strong performance from the Central and West Africa non-operated portfolio, with the new Simba and Ruche fields in Gabon significantly exceeding expectations.

The group is currently producing over 95,000 bopd and, with an additional TEN production well due on stream before the half-year, Tullow’s net oil production is expected to rise to 100,000 bopd in the second half of 2019.

To account for the lower performance in the first quarter, the 2019 production forecast range has been adjusted from 93,000-101,000 bopd to 90,000- 98,000 bopd.

Tullow’s two drillships, the Stena Forth and Maersk Venturer, have been working in tandem on Ghana drilling and completion operations throughout the first quarter with three wells drilled and two wells completed.

As previously reported, Tullow will also use the Stena Forth drillship for two wells located offshore Guyana. The company said on Thursday that this drillship would cease operations in Ghana at the end of May and move to Guyana in June.

The Maersk Venturer will continue with drilling and completion operations in Ghana.

Source: ghanaguardian.com