Monday 5 December 2016

Tullow, Anadarko plan to expand oil output off Ghana

Published 10/11/2010 | 13:42

Tullow Oil and Anadarko Petroleum Corp plan to expand crude and natural gas production off Ghana following the start of oil production at the Jubilee field in December.

  • Go To

The partners, including Kosmos Energy and Ghana National Petroleum Corp, are examining plans for the Owo and Tweneboa fields development starting in 2012, Tullow said today in a statement.

The companies are also expecting to submit a plan for the southeast Jubilee area in February after declaring its commerciality in September.

“We are looking at different development concepts at the moment” at Tweneboa, Tullow Chief Operating Officer Paul McDade said today by phone.

“What is critical is further appraisal.” The partners plan to add two more deep-water rigs operating off Ghana, raising the number to four, he said.

The companies may double production at the Jubilee field off Ghana by 2015, Nana Boakye Asafu-Adjaye, chief executive officer of Ghana National, said on October 7. The African nation will join the ranks of the world’s top 50 oil producers after output starts at its largest oil field.

Jubilee will initially produce about 50,000 barrels of oil day in December. Output will rise to 120,000 barrels a day over the next three to six months, Tullow said.

Teak prospect

“An exploration drilling campaign is scheduled to commence in the West Cape Three Points license in December,” starting with the Teak prospect in Ghana, Tullow said in the statement.

Including Jubilee, the company is expected to pump about 58,000 barrels of oil equivalent a day in 2010, Tullow said, reiterating an earlier forecast.

Separately, Tullow is preparing a memorandum of understanding with the Ugandan government to advance works in the East African nation, the company said.

The company plans to set up a joint venture with China National Offshore Oil Corp and Total SA to develop the Lake Albert basin.

Tullow paid about $1.5bn in July to Heritage Oil for its interests in Block 1 and 3A in the basin.

The Ugandan government is demanding the payment of capital gains tax from Heritage on the transaction. Tullow needs the issue to be cleared up before it can bring in China National Offshore and Total as partners.

The explorer drilled five successful wells in the Lake Albert basin since July, it said today. It plans to expand exploration in the region after completing negotiations with the Ugandan government.

The latest of these wells, Kigogole-4, “encountered three zones containing 15 meters (49 feet) of oil bearing reservoir and found new pay in the basal sand section of the well,” it said. “In addition, a material new discovery was made with the Mpoyo-1 well.”

Bloomberg

Read More

Promoted articles

Editors Choice

Also in Business