Tullow starts production at Jubilee South East

Tullow Oil plc has started production from the first well at the $1 billion Jubilee South East (JSE) joint venture in the Tano basin, offshore Ghana.

FUTURE

In 2023, partners Kosmos Energy, Ghana National Petroleum Corporation, Petro SA and Jubilee Oil Holdings aim to bring on stream a further two producers and one water injector for more than 100,000 barrels of oil per day.

Production is expected to increase over the next few years through an infill drilling programme and exploration of identified “multiple” future drilling locations.

The JV has invested $1 billion over the past three years on JSE to drill wells and instal the infrastructure needed to bring undeveloped reserves to production.

Tullow added that the project now uses more local suppliers and that Ghanaian companies manufacture the majority of the complex offshore infrastructure, with more than 90% local workforce.

“This demonstrates the evolution of the Ghanaian supplier base that can now support substantial elements of its oil and gas industry and is testament to Tullow and its partners’ commitment to developing local capacity.”

Chief executive officer Rahul Dhir added: “We are well positioned for future growth with production ramping up in the second half of 2023 that will generate significant free cashflow.

“This marks the start of material deleveraging as we continue our transition into a low-debt business with the financial flexibility to pursue value accretive opportunities.”