Tullow to inject $1.1bn into Jubilee Phase 1A bloc
Date published: January 20, 2012
Tullow Oil Plc, the unit operator of Jubilee Field has announced that it would spend a total of $1.1billion to execute the Jubilee Phase 1A development. This follows the approval from the Government of Ghana on 9th January, 2012.
The Phase 1A production wells are expected to commence drilling in February 2012.
This development will consist of eight new wells, five producers and three additional water injectors, and the expansion of the sub-sea network. It will be conducted over an 18 month period. This was contained in Tullow Group’s trading statement and operational update.
According to the Group, Jubilee field production will ramp back-up in 2012 towards the field plateau rate of 120,000 barrels of oil per day (bopd), as the Phase 1 remedial programme begins to take effect from January 2012, and the new Phase 1A wells are brought on stream from the second quarter.
The British oil exploration and production firm announced that: “Production is expected to average between 70,000 to 90,000 bopd in 2012. The final outcome will be dependent on the well performance achieved, the downtime required to execute the recompletions and the scheduling of available rigs for other operations to ensure the Group’s exploration and appraisal commitments are also fulfilled”.
The Phase 1 development of the Jubilee field was completed in October 2011 when the last of the 17 initial wells was drilled, completed and brought on stream. All performance tests of the Floating Production Storage and Offloading System (FPSO) vessel have been completed, uptimes for the first year of operation of the vessel have been best in class at over 95%, the Group stated.
According to the oil firm, gross production from the field reached 88,000 bopd during 2011 before declining to approximately 70,000 bopd at year-end, with an average production for the year of 66,000 bopd.
The cause of this decline in well productivity has been identified as a technical issue related to the design of the well completions and is not expected to have any impact on field reserves and resources.
Commenting yesterday, Aidan Heavey, Chief Executive of Tullow said; “Record revenues and cash flows from increased production and strong commodity prices combined with industry-leading exploration success underpin another very good year for Tullow in 2011.
In 2012 we expect significant progress in Ghana and Uganda as we move forward with Jubilee well remediation and Phase 1A, TEN and the Lake Albert developments.
We have an exciting exploration programme to open new basins, both onshore and offshore, and we hope to extend our reach in Africa and elsewhere along the Atlantic Margins with major new partnerships. There is much to look forward to in the year ahead.”
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