Tullow CEO upbeat on outlook for year ahead
Published 19/05/2010 | 05:00
TULLOW Oil chief executive Aidan Heavey told shareholders yesterday that he remains bullish in his outlook for the year ahead.
Speaking at a shareholders' meeting in Dublin, Mr Heavey said the Jubilee and Tweneboa discoveries off the coast of Ghana remain on target for initial production in the fourth quarter of this year.
Production at the deep water field is expected to reach 120,000 barrels of oil per day within six months of that time.
He described the Jubilee field, in particular, as "world class" and denied there would be any delays in the Q4 target.
"The biggest potential issue we faced was the floating production, storage and offloading unit (a ship that stores oil on site until it is transferred to a tanker) and that has turned out not to be an issue," he said.
If the Jubilee field comes on stream by that time it will have gone from discovery to first oil in less than three and a half years.
The development employs 138 staff on site.
Tullow also said that it did not foresee any significant tax issues from its sale of part of its licence in Lake Albert, Uganda, to the Chinese firm CNOOC and French company Total.
As part of the deal, Tullow has sold the two companies a third of the fields in the region it acquired from Heritage Petroleum at a cost of up to $1.5bn (€1.21bn).
The Heritage transaction is expected to be approved in the next fortnight.