Tullow is expected to drill and complete seven new wells across the TEN and Jubilee fields this year.
This would allow gross oil production from Ghana to rise to approximately 180,000 bopd in line with the year’s production forecast.
Gross production from Jubilee in 2018 averaged 78,000 bopd (net: 27,700 bopd) slightly below the Group’s November forecast.
That was due to minor operational issues in December, which have now been resolved.
Tullow’s net production from Jubilee in 2018, including estimated production-equivalent insurance payments of 8,600 bopd, was 36,300 bopd.
Tullow expects 2019 average gross oil production from the Jubilee field to increase to around 96,000 bopd (net: 34,000 bopd).
Tullow’s Corporate Business Interruption insurance is expected to provide around 1,000 bopd of net production-equivalent insurance payments, resulting in expected total 2019 Jubilee full-year average net production of 35,000 bopd.
The TEN fields performed well throughout 2018 with gross production averaging 64,500 bopd (net: 30,400 bopd) in line with expectations, the company said.
It expects gross oil production from the TEN fields in 2019 to step up significantly to around 83,000 bopd (net: 39,000 bopd). Gross gas production is expected to be around 2,100 boepd (net: 1,000 boepd).
Paul McDade, chief executive officer, TULLOW OIL PLC, said: “Tullow is well-placed to deliver on its growth ambitions. In 2019, we will increase oil production in West Africa, target Final Investment Decisions in East Africa and drill the first wells in an exciting exploration campaign in Guyana.
Despite a volatile oil price, Tullow’s improved balance sheet, low-cost production and strong cash flow generation, even at lower oil prices, will allow us to both invest for growth and pay a sustainable dividend.”
(By Mohammed Awal)