Tullow Oil said oil production from its operation in Ghana would “transform” its production next year, as it announced plans to expand crude and natural gas production in the region.
In an interim statement today, the oil and gas exploration company said the first oil production from the Jubilee field is expected early next month. Jubilee is expected to produce around 50,000 barrels of oil per day before the end of the year, rising to 120,000 bopd over the next three to six months.
Tullow, along with its partner Kosmos Energy, is also expecting to submit a plan for south-east Jubilee area works in February after declaring its commerciality in September.
The company is also looking at the recently discovered Owo and Tweneboa fields, with a “major” appraisal programme due to begin. Development is expected to begin in 2012.
“An exploration drilling campaign is scheduled to commence in the West Cape Three Points license in December commencing with the Teak prospect,” Tullow said in a statement.
Elsewhere, Tullow is preparing a memorandum of understanding for the farm-down and development of assets in Uganda. The company and its partners Total and CNOOC plan to take a one-third interest in the development of the Lake Albert rift basin. It acquired the interests of Heritage Oil and Gas in Block 1 and 3A in the basin in July, but a dispute between Heritage and the Ugandan government over the payment of capital gains tax on the deal has delayed matters.
“Tullow and the Government of Uganda have been engaged in constructive discussions aimed at resolving this issue and progress has been made in recent weeks,” the company said.
Since the beginning of July, five successful appraisal wells have been drilled in Uganda.
The company also said today that capital expenditure will be in line with previous guidance of $1.5 billion. Last month, the company extended its credit facility by $350 million to $600 million, bringing its total debt facilities to $3.1 billion.
