Tuesday 27 June 2017

Perfect TEN for Tullow as oil flows from Ghana

Oil from Ghana’s new fields has flowed to The Prof John Evans Atta Mills vessel
Oil from Ghana’s new fields has flowed to The Prof John Evans Atta Mills vessel
Michael Cogley

Michael Cogley

Irish exploration firm Tullow Oil has begun pumping oil from its strategically important Ghanaian TEN project, three years after the plan of development was approved by the Ghana government.

Tullow expects production to ramp up gradually towards 80,000 barrels of oil per day (bopd).

"This is an important moment for Tullow as production begins from our second operated development in Ghana," said Tullow chief executive Aidan Heavey.

The company will now look to start reducing its net debt burden, which grew to almost $5bn on foot of the significant capital expenditure costs necessitated by the offshore TEN project.

Mr Heavey told the 'Sunday Independent' last month that completing the project "transforms the ability of the business to do what it wants to do".

Tullow's next development target is an asset in East Africa.

"It's an onshore so it's a less costly thing than TEN. TEN was a big, big project - you spend a lot of money up front and that's where the bulk of our debt came from, Mr Heavey said.

"We have big percentage interests in East Africa so our long-term plan is, when we get to development stage, that we will sell down part of the interest in those to fund the development costs," he added.

Irish Independent

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