Tullow Expects 2H Jubilee Shutdown, incl Gas
Tullow Oil founder and CEO Aidan Heavey handed over the top job to Paul McDade on April 26 and updated markets in a trading update on the UK independent’s operations, ahead of half year results on July 26. Yet work to remedy its key Ghanaian Jubilee floating facility has yet to be completed.
Heavey, who becomes chairman, said that offshore Ghana: "We have made good progress on the Jubilee turret remediation project and optimising production from the TEN field.”
Aidan Heavey steps down as Tullow CEO, April 26, becoming chairman (Photo credit: Tullow)
West Africa 1Q2017 working interest oil production was 85,700 b/d while gas was 6,300 boe/d. Inclusive of the equivalent from insurance payments, it expects a similar full year 2017 average for West African oil, with Europe working interest gas expected to average between 6,000 and 7,000 boe/d.
Jubilee work deferred
But work to remedy a fault with the turret on its Jubilee floating production ship offshore Ghana is expected to require Jubilee’s shutdown for up to twelve weeks during 2H2017 – including halting associated gas flows to shore. That work was originally scheduled for late 2016, but required consultation with government. Work is ongoing to look at ways to reduce the shutdown, said Tullow. It expects a final decision around mid-2017 on the work required.
The TEN field “performed in line with expectations” with gross oil output averaging 50,000 b/d.
Tullow wants to drill on the western fringes of the TEN area, which is contested between Ghana and Cote d’Ivoire. It said April 26 that an International Tribunal for the Law of the Sea (ITLOS) arbitration ruling on the dispute between the two states is now expected in late September 2017.
Divestments
Tullow also noted that it agreed to divest its entire Netherlands portfolio to Halo earlier this month.
After Chinese state CNOOC pre-empted a planned $900mn sale in January by Tullow of a 21.57% stake in its Uganda interests to Total, Tullow is now working with Total and CNOOC to conclude definitive sale documents to split the stake 50-50 between its partners Total and CNOOC at the same price.
Mark Smedley