Tullow Expects TEN Gas Sales in July

UK-based Africa-focused independent producer Tullow Oil said, in its June 28 trading update, that it expects to start gas sales from the TEN field offshore Ghana next month.

"Gas from the TEN fields was supplied to [state-owned] Ghana National Gas Company to replace Jubilee gas during the Jubilee shutdowns. Gas sales from TEN are expected to commence in July 2018," said Tullow. It admitted that start-up of TEN gas sales had been expected by now and so revised its guidance of net Tullow production for full year 2018 to 89,000-95,000 barrels of oil equivalent per day.

Jubilee field producer ship, FPSO Kwame Nkrumah, was shut down for two periods in 1H2018 for planned work to stabilise the turret bearing, said Tullow: "A final planned shutdown is expected around the end of 2018 to rotate the FPSO to its permanent heading and install the final spread mooring anchoring system with minimal impact to production." 

Tullow expects 1H2018 gross production of 65,700 b/d oil (23,300 b/d net to Tullow) from Jubilee, and 65,100 b/d (30,700 b/d net to Tullow) from the TEN fields. Further drilling of wells in both fields was underway by Maersk Venturer which since March had drilled three production wells. Tullow currently provides associated gas from Jubilee to state GNGC free-of-charge, but will sell all TEN gas.

In Kenya, Tullow said that its South Lokichar oil development plan is progressing well and on track for a final investment decision in late 2019; an early production began this June with output being trucked to Mombasa, initially at 600 b/d, rising to 2,000 b/d once this early production is in full swing. 

Total, CNOOC and Tullow are still awaiting Uganda government approval of a farm-down deal there, more than a year since it was announced. Partners are still targeting FID of that big oil project by end-2018.

Tullow's statement was provided ahead of its 2Q results, scheduled for release July 25.